The market rebounded after three-day losses and clocked half-a-percent rally on November 22, backed by select banking and financial services, auto, technology, FMCG, metal and pharma stocks. The positive global cues also aided the rally.
The BSE Sensex rose over 270 points to 61,419, and the Nifty50 jumped more than 80 points to 18,244. The indices have seen the formation of a bullish candlestick pattern on the daily charts.
The market breadth was in favour of bears, which resulted in mixed trend in broader markets. The Nifty Midcap 100 index gained half-a-percent and Smallcap 100 index ended flat.
The volatility index reached 14-month low, making the trend more favourable for bulls. India VIX on Tuesday fell by 6.45 percent to 13.84, the lowest closing level since September 15, 2021.
Stocks that were in action included Easy Trip Planners, which rallied more than 19 percent to end at record closing high of Rs 68.4, continuing sharp uptrend for second consecutive session. The stock had a strong gap-up opening for yet another session and formed robust bullish candle on the daily charts with large volumes. Before this sharp up-move, the stock had seen consolidation for more than five-and-a-half months after falling sharply from its previous all-time high in May 2022.
Bank of India shares climbed more than 4 percent to Rs 80.45, the biggest closing level since June 28, 2021 and formed a bullish candle on the daily frame for the second consecutive session with good volumes. The stock has seen a decisive breakout of long downward sloping resistance trendline adjoining February 18 and November 9.
Castrol India was also in focus, rising 3.5 percent to Rs 134.55, the highest closing level since November 15, 2021 and formed healthy bullish candle on the daily charts with above average 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:
For the last 5 months, Castrol India has been making higher highs and higher lows on a weekly scale which indicates that counter is in an uptrend. But one thing which needs attention is that it is approaching its historical resistance of Rs 140-142.
On indicator front, 21-day ROC (rate of change) needs some cooling as it is overstretched and placed at 33 levels.
One can book partial profit at current levels. As of now wait and watch in Castrol India.
Since the last 2 trading sessions, the said counter has given a whopping 44 percent return. Also, slope of the rally is 90 degrees approximately, which is difficult to sustain in the coming days.
On the indicator front, daily MACD (moving average convergence and divergence) is displaying a negative divergence (refer to the chart). One can book partial profit at current levels. Fresh longs are not recommended at current market price.
Recently the said counter has broken its historical resistance of Rs 70 and closed well above it. For the next two months, Rs 70 - 100 would the range for the Bank of India.
Even massive volume was seen from levels that are indications of further strength in the counter.
From an indicator perspective weekly, MACD is hinting towards more upside for Bank of India.
One can buy in a small tranche at current levels and another around Rs 75 (if tested gain). The upside is expected till Rs 95, with credible support at around Rs 70.
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