The market staged a smart recovery in afternoon and closed 0.4 percent higher on March 28, supported by falling oil prices. Buying in banking, financials, FMCG stocks, and index heavyweight Reliance Industries aided the recovery.
The BSE Sensex gained more than 200 points to close near 57,600 levels, while the Nifty50 gained 69 points at 17,222, but the broader markets closed in the red. The Nifty Midcap 100 index declined 0.2 percent and Smallcap 100 index slipped 0.7 percent.
Stocks that were in action include Gujarat Alkalies and Chemicals which surged nearly 11 percent to Rs 897, Aster DM Healthcare which jumped 10.5 percent to Rs 200, Supreme Petrochem which climbed 12 percent to Rs 1,013, and GNFC which rallied nearly 7 percent to Rs 820.
Here's what Malay Thakkar of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Gujarat Alkalies and Chemicals
Gujarat Alkalies and Chemicals has broken out of a six-month consolidation with strong volumes indicating start of a new bullish trend.
On the daily charts the stock formed a long bull candle indicating strength in the breakout. The RSI (relative strength index) indicator has broken above the 70 mark suggesting strong bullish momentum in the counter.
We recommend traders and investors to continue holding the stock and expect upside towards Rs 1,010 followed by Rs 1,120 level. Downside support for the stock is now placed at Rs 830-840 zone.
Aster DM has broken out of a falling trendline resistance drawn from the highs of August 2021. The breakout has been accompanied with a sharp rise in volumes and the stock formed a bullish Marubozu candle on the daily charts.
The RSI on weekly scale is moving higher after forming a bullish hinge at the 40 mark. One can continue holding the stock and expect upside towards Rs 218 followed by Rs 235 levels. A strict stop-loss of Rs 188 should be maintained for this setup.
Supreme Petrochem is moving in a strong uptrend with higher highs and lows formation. The stock has not corrected irrespective of the correction in Nifty and currently trades at life high.
The RSI indicator on all timeframes is trading above the 70 mark signalling strong bullish momentum. Traders and investors can continue holding the stock and expect upmove towards Rs 1,160 level.
Downside support for the counter is placed at Rs 900 level.
GNFC is moving in a rational uptrend since March 2020. The upmove in the stock has been backed with good volume buildup indicating long participation in the counter.
The stock trades above the key moving averages 20 day SMA (Rs 683), 50 day SMA (Rs 576) and 200 day SMA (Rs 445).
One can continue holding the stock as the downside support is placed at Rs 740 and can expect upside towards Rs 900 followed by Rs 990 levels.
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