The market managed to maintain its upward rally for the fifth day in a row with the Nifty50 decisively holding the 17,500 mark on October 20 despite correction in global peers. The buying in technology, oil & gas, metal and FMCG stocks helped the market climb further.
The BSE Sensex gained nearly 100 points to 59,203, and the Nifty50 rose more than 50 points to 17,564, while the broader markets had a mixed trend with the Nifty Midcap 100 index down third of a percent and Smallcap 100 index rising one-tenth of a percent.
The volatility also cooled down further, helping the bulls retain charge over Dalal Street. India VIX declined 1.45 percent to 17.23 levels.
Stocks that were in action included Deepak Fertilizers and Petrochemicals Corporation which rallied more than 5 percent to end at record closing high of Rs 1,038, forming big bullish candle on the daily charts with strong volumes. Even on the weekly as well as monthly charts, there was big bullish candlestick pattern formation.
Gravita India shares climbed 5.5 percent to Rs 374, the highest closing level since February 17 and formed large bullish candle on the daily charts with above average volumes, while PNB Housing Finance was also in focus, rising more than 4 percent to Rs 444, which was one month high, and formed robust bullish candle on the daily charts with large volumes for second consecutive session.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
In this week so far, the stock rallied over 16 percent. On last Thursday, the stock gained 5 percent, it also registered a fresh all-time high of Rs 1,048. On daily and weekly charts, the stock has formed breakout continuation formation and it also formed long bullish candle which is broadly positive.
We are of the view of that, the medium term texture of the stock is positive side but due to short term overbought situation we could see some profit booking at higher levels.
Rs 1,000 and Rs 980 would be the key support zones. As long as the stock is trading above the same, the uptrend wave is likely to continue. Above which, it could move up to Rs 1,100-1,150. On the flip side, below Rs 980 uptrends would be vulnerable.
In this month so far, the stock rallied nearly 20 percent. On last Thursday, the stock not only cleared the short term resistance of Rs 365 but succeeded to close above the same which is largely positive.
On daily and weekly charts, the stock has formed promising price volume range breakout formation.
For the swing traders now, Rs 360 would be the key level to watch out, above which, it could move up to Rs 400. Further upside may also continue which could lift the stock up to Rs 425.
After a short term correction, the stock took the support near Rs 380 or 200 days SMA (simple moving average) and reversed. Post reversal, it successfully trading above 20 days SMA (simple moving average) Rs 400.
In the current week, the stock rallied over 13 percent and formed long bullish candle formation on daily and weekly charts.
An incremental volume activity and promising short term formation indicating continuation of uptrend in the near future.
For the trend following traders, Rs 415-405 would be the key levels to watch out. The overall chart structure suggests if the stock sustained above the same then bullish formation is likely to continue till Rs 470-500.
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