The market clocked more than 1 percent gains for the third consecutive session on February 2, following the Union Budget and riding on positive global cues.
The BSE Sensex surged nearly 700 points to close above 59,500 levels, while the Nifty50 jumped over 200 poinst to close near 17,800 levels on Wednesday.
The broader markets also traded in line with the frontline indices as the Nifty Midcap 100 index gained 1.2 percent and Smallcap 100 index rose 1.4 percent. All sectors participated in the rally with Bank, Financial Services, FMCG, IT, Metal and Pharma being the prominent gainers.
Stocks that were in focus include Dr Lal PathLabs, which was the biggest gainer in the futures and options segment rising 7.72 percent to Rs 3,211.35, and Spandana Sphoorty Financial, which was locked at the 20 percent upper circuit at Rs 404.50 on the NSE.
Stocks that touched record highs include Elgi Equipments which hit an all-time high of Rs 388.70, before closing with 12 percent gains at Rs 381.90, VIP Industries, which touched its life high of Rs 688.10 before finishing the session 12.33 percent higher at Rs 676.55 and Capri Global Capital which clocked a fresh record high of Rs 629.50, before closing with 5.17 percent gains at Rs 598.30.
Here's what Mehul Kothari of Anand Rathi Shares & Stock Brokers, recommends investors should do with these stocks when the market resumes trading today:
Spandana Sphoorty Financial has corrected approximately 60 percent from its previous high of Rs 820 in the last eight months and is now placed well below its 200-day exponential moving average (DEMA) on the daily chart. Even in the last trading day, it made a bullish marubozu candlestick pattern, along with huge volume and turned positively to have an early sign of reversal.
On the daily indicator front, 14-period RSI (relative strength index) shows positive divergence at the same time MACD (moving average convergence divergence) also displays positive crossover along with positive divergence.
So, from an investor perspective, one should add at current levels with an upside potential of Rs 560-580 and credible support is seen at Rs 300-330.
VIP Industries has registered an all-time high in the previous trading session of Rs 688.10. On the weekly chart, it has given a clean breakout by surpassing the previous top of Rs 668.85 and closed at Rs 676.55.
On the indicator front, MACD weekly has given positive crossover above the zero line along with RSI weekly has entered above 70 zone which indicates that stock is ready for another up move.
So, from an investor perspective, one should add at current levels with an upside potential of Rs 770-800 and credible support is seen at Rs 630-640.
Dr Lal PathLabs has corrected approximately 34 percent from its previous high of Rs 4,245 since the last four months and is placed well below its 200 DEMA on daily chart. On the daily chart, it has made a bullish bat pattern with a potential reversal zone of Rs 2,900-3,000 along with that there is piercing line and inverted hammer candlestick pattern near potential reversal zone.
On indicator front, RSI daily has made complex behaviour below 30 levels when it tested potential reversal zone of Rs 2,900-3,000 mark which indicates that the stock has formed it base and ready for an up move.
So, from the investor perspective, one should add at current levels with an upside potential of Rs 3,750-3,900 and credible support is seen at Rs 2,900.
Elgi Equipments has registered all-time high of Rs 388.70 in previous trading session. On daily chart it has given clean breakout and closed near previous high of Rs 382.70.
On indicator front, daily RSI bounced back by taking support near 50 levels along with directional movement index giving positive crossover indicating that stock is ready for another up move.
So from investor perspective one should add at current levels with upside potential of Rs 440-450 and credible support is seen at Rs 350.
Capri Global Capital has registered all-time high of Rs 629.5 in previous trading session. On weekly chart, it has given clean breakout of triangle pattern by surpassing previous top of Rs 578.4 and closed at Rs 598.30.
On indicator front, MACD weekly has given reverse divergence with positive crossover above zero line along with RSI weekly has entered above 70 zone which indicates that stock is ready for another up move.
So from investor perspective one should add at current levels with upside potential of Rs 720-730 and credible support is seen at Rs 560.
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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