It was looking like a profit booking day in the morning but the significant recovery in the afternoon lifted market sentiment on February 28, extending the uptrend for a second consecutive session.
The benchmark Nifty50 recovered more than 400 points from day's low and finally settled with 135 points gains at 16,794, while the BSE Sensex rallied nearly 400 points to finish the Monday's trade at 56,247, led by index heavyweight Reliance Industries, FMCG, metals, and IT stocks.
The action was also seen in broader space as the Nifty Midcap 100 and Smallcap 100 indices gained 1 percent and six-tenth of a percent respectively.
The mood was upbeat in the metals space, as the Nifty Metal was the biggest gainer among sectors with a 5 percent rally. Aluminium major Hindalco Industries contributed the most to the segment, registering 7.5 percent gains to close at Rs 574. It was also the biggest gainer in the futures & options segment.
GAIL and Power Grid Corporation of India were the second and fifth biggest gainers in the futures & options segment, rising 7.5 percent to Rs 145 and climbing 6 percent to Rs 209 respectively.
Adani Transmission extended uptrend for second consecutive session, freezing at 5 percent upper circuit at Rs 2,134.
Here is what Malay Thakkar of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Hindalco is showing relative outperformance compared to Nifty and the stock has made a fresh 52-week high (Rs 580) irrespective of the weakness in the market.
In Monday's session, the stock has broken out of a rounding formation with strong volumes. On the daily charts, the stock has formed a Bullish Marubozu candle indicating strong bullish momentum.
Traders and investors can continue holding the stock and expect it to move higher towards Rs 615 followed by Rs 670. Rs 545-550 will act as a strong support zone for the stock.
On mid-term charts, GAIL is consolidating in the range between Rs 125-170 for the past 1 year and has been an underperformer compared to the Nifty.
In Monday's session the stock has shown good up move and breached above the 20-day SMA (Rs 140) to give a close with a strong bullish candle.
Relative strength index (RSI) indicator has crossed above the 50 mark indicating bullish momentum in the short term. Downside support for the stock is now placed at Rs 125.
One can use the up move towards Rs 155 followed by Rs 170 to exit from the stock.
Adani Transmission has given a consolidation breakout and currently the stock is trading at 6-week high. The stock has been moving in an uptrend and forming Higher highs and lows since March 2020.
In the current session the stock has broken above upper Bollinger band and the bands are expanding indicating higher volatility and chances of a trending move going ahead.
Traders and investors can continue holding the stock with upside targets of Rs 2,280 followed by Rs 2,475. A stop-loss of Rs 1,980 can be maintained for this trade.
Power Grid Corporation of India
Power Grid has been moving in an uptrend with higher highs and lows formation since March 2020. The stock has been taking support at its 20-week SMA (Rs 201) since January 2021 with some mild whipsaws.
The RSI plotted weekly has witnessed a range shift and is sustaining above the 50 mark since November 2020 indicating strong bullish momentum in the underlying.
One can continue holding the stock and expect it to move higher towards Rs 220 (swing high) a break above which can take it higher towards Rs 240. Rs 196-200 will be the support zone for this counter.
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