The bulls provided strong support to the equity market for the sixth consecutive session on October 14. As a result, the benchmark indices scaled above 61,000 on the BSE Sensex and 18,300 on the Nifty50 for the first time.
Barring the auto index, all other sectors participated in the run with Nifty Bank, metal, IT and realty being the prominent gainers that rallied 1.3-1.8 percent on Thursday. The past week was a truncated one as the market was shut on Friday for Dussehra.
The benchmark indices, broader markets as well as Bank Nifty ended at record closing highs. The BSE Sensex closed above 61,300 levels with nearly 570 points gains and the Nifty50 added more than 170 points to settle above 18,300 mark. The Nifty Midcap 100 and Smallcap 100 indices gained 0.6 percent each.
Stocks that were in focus included Mindtree, which closed with gains of 7.50 percent at Rs 4,691.20, Persistent Systems (settled at Rs 4,212 with 5.24 percent gains), India Cements was also in focus (closed at Rs 214.40 with 7.82 percent gains).
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
The stock has rallied over 10 percent on October 14. On Thursday, the stock opened on a strong note and quickly cleared the Rs 205-resistance mark with a strong volume activity.
On the short-term time frame, the stock has formed strong price volume breakout pattern. The texture of the pattern suggests breakout action will continue in the near term if stock succeeds to trade above Rs 205 level.
For the breakout traders, Rs 205 would be the sacrosanct level, and trading above the same we can expect uptrend continuation wave up to Rs 225-235.
Post quarterly results outcome, the stock opened with a 5 percent gap up and hit a fresh all-time high of Rs 4,937.65, but failed to sustain at higher level. The daily chart structure is still in to the positive side but it consistently facing resistance near Rs 4,800.
For the breakout traders, Rs 4800 would be the immediate hurdle. Above the same breakout continuation formation is likely to continue up to Rs 4,950, further upside may also continue which could lift the stocks till Rs 5,100. On the flip side, dismissal of Rs 4,500 may increase further weakness up to Rs 4,400-4,300.
On daily and weekly charts, the stock has formed a strong higher bottom series formation. On daily charts, it has formed strong bullish price volume breakout formation. The promising daily and weekly trade set up indicating further upside from current levels.
The another important thing is that, it is trading well above medium term and short term averages along with modest volume activity which also support short term uptrend.
For the trend following traders, Rs 4,050 and Rs 3,950 would act as an important support level. And, if stock manages to trade above the same, we can expect continuation of uptrend wave up to Rs 4,400-4,600.
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