It was yet another session for bulls as positive sentiment helped benchmark indices form not only a bullish candlestick pattern on daily charts but also higher high and higher low formation on July 19, supported by buying in banks, auto and metal stocks.
The BSE Sensex rallied nearly 250 points to 54,768 and the Nifty50 jumped over 60 points to 16,340 while the rally was also seen in the broader space on positive market breadth as the Nifty Midcap 100 index gained 0.7 percent and Smallcap 100 index rose one percent.
Stocks that were in action included Escorts Kubota which rallied 5.3 percent to close at Rs 1,755.35, the highest level since April 6, forming a robust bullish candlestick pattern on the daily charts with robust volumes, continuing uptrend for the fifth consecutive session.
Dilip Buildcon shares rallied 7.2 percent to Rs 219.1, the highest closing level since June 10, and formed a large bullish candle on the daily scale with above-average volumes, while Trident saw a gap-up opening and was locked in the five percent upper circuit at Rs 39.9, forming a bullish candle on the daily charts.
Here's what Ruchit Jain of 5paisa recommends investors should do with these stocks when the market resumes trading today:
The stock has seen a significant price-wise correction since October 2021. In this downtrend, there have been sharp pullback moves but such upmoves have not seen follow-up moves to change the trend.
Because of the oversold setups, the prices have seen a pullback move in the last couple of sessions but until there’s a change in the structure or formation of any ‘Higher Top Higher Bottom’ structure, traders should avoid bottom fishing in this stock.
The immediate support for the stock is placed around Rs 200 while resistance is seen around Rs 242.
The stock has corrected along with the broader markets in the last few months. However, momentum readings have now given a positive crossover from oversold territory.
Also, prices have formed a reversal pattern at recent swing lows and hence a pullback move can be seen in the stock in the near term.
Traders can look to trade in this pullback move with a positive bias for a probable target around Rs 44-46. The immediate support for the stock is now placed around Rs 36.
Auto stocks have outperformed in the last couple of months and have been continuing positive momentum. This stock has recently seen a gradual upmove after a corrective phase and the volumes have now increased along with the price upmove which is a positive sign.
Hence, the stock can continue its uptrend in the short term and rally towards the previous swing highs of Rs 1,850-1,900. The immediate support for the stock is placed around Rs 1,650.
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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