The market continued its uptrend for second consecutive session on August 24, though there was volatility throughout the day especially ahead of the expiry of August futures & options contracts on August 25.
The BSE Sensex rose 54 points to 59,085, and the Nifty50 gained 27 points at 17,605 and formed a decent bullish candlestick pattern on the daily charts, while the Nifty Midcap 100 and Smallcap 100 indices climbed seven-tenth of a percent and eight-tenth of a percent respectively.
The cooling of volatility below 18 levels also supported bulls. India VIX, the fear index, fell 3.25 percent to 18.43 levels.
Stocks that were in action and outpaced broader markets included Can Fin Homes which was the second biggest gainer in the futures & options segment, rising nearly 7 percent to Rs 636, the highest closing level since May 2, 2022 and formed a large bullish candlestick pattern on the daily charts with above average volumes.
Ujjivan Financial Services jumped more than 6 percent to close at more than one year high of Rs 196 and formed a robust bullish candlestick pattern with large volumes, while Tejas Networks was up more than 6 percent to Rs 525 and formed a strong bullish candlestick pattern on the daily charts with robust volumes.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
On the weekly chart, the counter is approaching near resistance levels of approximately Rs 660-670. Over the last two months, the stock has seen 56 percent appreciation. If one is already holding, then one should book some profits between Rs 660 and Rs 670 levels.
Last but not the least, fresh buying in the counter is not advisable at the current market price, as daily MACD (moving average convergence and divergence) is over-stretched at higher levels which is a sign of exhaustion.
What a great setup we are having at Ujjivan-- precise bullish Special Gartley pattern which got completed at 0.886 ratio on the weekly chart with N-wave formation near the potential reversal zone of Rs 160-170.
In the current scenario, the counter has reversed from the potential reversal zone with positive volume picking up which hints at a further upside. One can buy at current levels in a small tranche and another tranche at Rs 180 levels. Upside is expected till Rs 255 and plausible support is seen at Rs 165.
At the current juncture, Tejas Networks is at the wait and watch stage as the counter has been moving in the range of Rs 400-530 on a weekly scale for the last 11 months or so and currently is at the upper range of the said levels.
In addition, the stock has already rallied 41 percent from its low of Rs 385 (May 2022).
One should book profit between Rs 530 and Rs 550 as these are historical tops where one can expect selling pressure. Also volumes are high at higher levels which is a sign of exhaustion.
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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