Bulls were roaring for the second consecutive session with benchmark indices rising 1.5 percent as every leading sector contributed to gains. Auto was the top gainer with more than two percent gains, followed by bank, financial services, IT and pharma that gained more than one percent each.
The BSE Sensex rallied nearly 900 points to 57,912, and the Nifty50 jumped over 250 points to 17,393, while participation was also seen from the broader space. The Nifty Midcap 100 and Smallcap 100 indices gained 1 and 1.5 percent respectively.
L&T Finance Holdings climbed more than nine percent to Rs 88.45, Jubilant FoodWorks jumped eight percent to Rs 595, and NLC India rose 4.6 percent to Rs 81.25.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
After a medium term price correction, the stock took support near Rs 490 and bounced back sharply. After reversal it is comfortably trading above 20 days SMA (simple moving average). On last Thursday, after a long time the stock successfully cleared the resistance of 50 day SMA and succeeded to close above the same which is largely positive.
In addition, on weekly charts it has formed promising reversal formation that also supported short term uptrend. The texture of the charts indicated continuation of uptrend rally, if it stands above Rs 565 or 50 day SMA then it could move up to Rs 625-650.
After a robust rally from Rs 60 to Rs 90, currently the stock is witnessing rangebound activity. For the last couple of weeks, it is trading within a Rs 80-90 range.
The important thing is, it is consistently taking support near 200 day SMA. On last Thursday, after double bottom formation the stock reversed sharply and rallied nearly 10 percent.
A strong price volume reversal formation indicates further uptrend from current levels. For the trend following traders now, Rs 85 or 20 day SMA would be crucial support level, above which breakout continuation formation is likely to continue till Rs 95-97.
On the flip side, below Rs 85 uptrend would be vulnerable.
In this month so far, the stock rallied over 30 percent. On April 21, NLC India hit a fresh 52 week high of Rs 83 and after a strong intraday session the stock closed above the Rs 80 resistance mark, which is broadly positive.
The important thing is the volume activity -- the incremental volume activity after breakout clearly indicates high chances of further uptrend from current levels.
On daily and weekly charts, the stock has formed strong promising price volume breakout formation that indicates bulls are clearly dominating price action.
For breakout traders, Rs 78 and Rs 76 would be the key levels to watch out for. The overall chart structure suggests if the stock sustained above the same then breakout continuation texture will likely continue up to Rs 90-95.
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.