The market seems to be on a strong footing after recent volatility and correction as the benchmark indices extended their upward journey for the third consecutive session on October 18, tracking positive trend in their global counterparts and buying across sectors.
The BSE Sensex spiked 550 points to 58,961, and the Nifty50 175 points to close nearly 17,500, while the broader markets also joined the rally with the Nifty Midcap 100 and Smallcap 100 indices gaining 1.1 percent and 0.76 percent, respectively.
Volatility also cooled down considerably in the last few sessions, with India VIX declining 5.23 percent on Tuesday to 17.45 levels.
Stocks that performed better than broader markets included BHEL which jumped more than 8 percent to Rs 68.2, the highest closing level since November 9, 2021 and formed a strong bullish candle on the daily charts with robust volumes.
Punjab National Bank shares rallied 5 percent to Rs 38.85, continuing the uptrend for the second consecutive session, and formed a big bullish candle on the daily scale with above average volumes.
TVS Motor Company was also up 5 percent to end at a record closing high of Rs 1,129 and formed strong bullish candle on the daily charts with above average volumes. On monthly basis, it has continued uptrend for the ninth consecutive month, and formed decent bullish candlestick pattern on the monthly scale for seventh straight month.
Here's what Ruchit Jain of 5paisa.com recommends investors should do with these stocks when the market resumes trading today:
The stock has been forming a ‘Higher Top Higher Bottom’ structure and is in an uptrend. Also, it has outperformed its peers within the sector and the RSI (relative strength index) oscillator still hints at a bullish momentum.
The 40 DEMA (days exponential moving average) has been acting as a support on declines and higher volumes along with the prices up-move indicates that the stock could move higher in the near term and hence traders can ride the trend with a trailing stop-loss method.
We advise traders to trade with a positive bias. The immediate supports for the stock are placed around Rs 1,060 and Rs 1,025.
The entire PSU Banking basket has seen a good buying interest in the last few days and after the leadership from the heavyweights, the midcap banks too now have seen a buying interest.
PNB, too, moved higher with good volumes in Tuesday's session, while the RSI oscillator hints at a positive momentum.
Hence, the stock can continue its up-move towards the previous swing high of Rs 41.50. Traders with existing positions can continue to ride the trend with a stop-loss below the support of Rs 35.50.
In the last few months, the stock has outperformed within the broader markets and has seen a good buying interest. Prices gave a breakout above the resistance of Rs 64 in Tuesday’s session which then led to a gush of buying interest.
The volumes were high along with the price rally which is a good sign, and hence, any decline in the near term is likely to increase demand for the stock.
In the near term, we could see a continuation of the up-move towards Rs 73-74, while the the previous resistance of Rs 64 will become a support on declines.
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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