It was a strong start for the January series as the Nifty50 closed at three-week high on December 31, backed by broad-based buying and positive global cues. The BSE Sensex rallied 460 points to close above 58,250 levels, while the Nifty50 jumped 150 points to over 17,350-mark.
All sectors participated in the run on December 31, with Nifty Bank, Auto, Financial Services, FMCG and Metal indices rising 1-2 percent. The rally in broader markets was higher than frontline indices as the Nifty Midcap 100 and Smallcap 100 indices climbed 1.4 percent each.
Stocks that were in focus include Hindalco Industries and Titan Company, which were the second and fifth biggest gainers, respectively, in the futures & options segment on Friday. Hindalco rallied 5.76 percent to Rs 475.55, and Titan Company jumped 3.49 percent to Rs 2,522.40 amid high volumes.
The Ramco Cements was also in focus, which climbed 1.97 percent to Rs 1,004.10 amid high volumes. Among others, Bata India and Fortis Healthcare, too, saw buying interest on Friday. Bata rose 3 percent to Rs 1,871.65, and Fortis gained 2.01 percent to close at Rs 297.30.
Here's what Rajesh Palviya of Axis Securities, recommends investors should do with these stocks when the market resumes trading today:
Since the past couple of months, the stock has been consolidating within a broad range from Rs 470-410 levels. This consolidation has resulted in an inverse "Head and Shoulder" - a short-term trend reversal formation.
With the current close, the stock has decisively broken out the neckline of Rs 467 levels on a closing basis. This breakout is accompanied by huge volumes which signal increased participation in the rally. This buying was observed from its 20, 50, and 100-day SMA (simple moving average) support zone which reconfirm bullish sentiments.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 500-515, with a downside support zone of Rs 460-450 levels.
The short-term trend for the stock remains down, however, since the past couple of weeks the stock continues to hold its crucial support zone of Rs 1,800 levels.
With the current close, this stock has sharply rebounded with huge volume indicating short covering at lower levels. The stock is still sustaining below its 20, 50, and 100-day SMA, indicating bearish sentiment.
The daily strength indicator RSI (relative strength index) has turned bullish along with a positive crossover indicating a bounce-back rally. Hence any short-term pullback rally towards Rs 1,950-2,000 levels remains as an exit opportunity for traders. On the downside, Rs 1,785-1,750 may act as a crucial support zone.
The stock is in a strong uptrend across all the time frames forming a series of higher Tops and higher Bottoms indicating bullish sentiments. With the current close, the stock has decisively broken out its five-month resistance zone of Rs 297 levels indicating strength ahead. This breakout is accompanied by huge volumes indicating increased participation.
The stock is well placed above 20, 50, and 100-day SMA which reconfirms the bullish trend. The daily and weekly strength RSI continues to remain bullish terrain. On the daily chart, the Band Bollinger signals increased momentum in the near term.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 330-350 levels with a downside support zone of Rs 270 levels.
Since last year the stock is consolidating within a broad range from Rs 1,120-Rs 920 levels representing a short to a medium-term sideways trend. With recent price action, the stock has bounced from its major support zone along with rising volumes.
At current levels, the stock is hovering around 20, 50, 100, and 200-day SMA which remains a positive sign. The daily and weekly strength RSI continues to remain bullish terrain.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,050-1,100 levels with a downside support zone of Rs 970-920 levels.
The stock is in a strong uptrend across all the time frames forming a series of higher Tops and higher Bottoms indicating bullish sentiments. The stock is well placed above its 20, 50, and 100-day SMA which reconfirms bullish sentiments.
On the daily chart, the Band Bollinger signals increased momentum in the near term. The daily and weekly strength RSI continues to remain bullish terrain.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,650-2,750 levels with a downside support zone of Rs 2,400 levels.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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