The market managed to eke out gains despite profit-taking and volatility in the last couple of hours of trade on Friday, October 21, extending its northward journey for the sixth consecutive session ahead of the one-hour Muhurat trading session on October 24.
The BSE Sensex gained more than 100 points to 59,307, while the Nifty50 rose 12 points to 17,576 and formed small-bodied bearish candle, which resembles the Spinning Top kind of pattern on the daily charts.
The broader markets were under pressure with the Nifty Midcap 100 and Smallcap 100 indices falling 0.7 percent and 0.2 percent respectively.
Stocks that were in action included Finolex Cables, which surged 10 percent to close at Rs 495, the highest closing level since February 9, 2022, and formed a large bullish candlestick pattern on the daily charts with robust volumes.
Polycab India gained nearly 2 percent to Rs 2,698 and formed a bullish candle on the daily charts with above-average volumes, while KPIT Technologies rallied 9 percent to Rs 712, the highest closing level since January 18, 2022, and formed a long bullish candle on the daily charts with strong volumes.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
With Friday's strong upmove, the stock has decisively broken out of its almost nine-month-long 'multiple resistance' zone of Rs 485 levels on a weekly basis, indicating strong comeback of bulls. This breakout is accompanied with huge volumes, indicating increased participation.
The stock has recaptured its 20- and 50-day Simple Moving Average (SMA) and rebound sharply. The daily "band Bollinger" buy signal indicates increased momentum. The daily, weekly and monthly strength indicator, relative strength index (RSI), is in bullish mode, which signifies rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 540-560, and downside support zone of Rs 460-440 levels.
The stock has witnessed a sharp rebound from its 38.2 percent support zone (Rs 2,461) of the previous rally (Rs 2,043-2,719), indicating buying interest at lower levels.
With the current week gains, the stock has decisively broken out of its multiple resistance zone of Rs 2,640 indicating positive bias.
The huge volumes seen in this rally signals increased participation. The stock is well placed above its 20, 50, 100 and 200-day SMA, which reconfirms the bullish sentiments.
The daily, weekly and monthly strength indicator RSI is in bullish mode, which signifies rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,900-3,000, and downside support zone of Rs 2,600-2,530 levels.
On the weekly chart, the stock has confirmed a "rounding bottom" formation on a weekly closing basis, indicating continuation of uptrend. With Friday's upmove the stock also witnessed a "multiple resistance zone" breakout at Rs 690 levels.
This breakout is accompanied with huge volumes, indicating increased participation. The stock is well placed above its 20, 50, 100 and 200-day SMA, which reconfirms the bullish sentiments.
The daily, weekly and monthly strength indicator RSI is in bullish mode, which signifies rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 770-810, and downside support zone of Rs 650-630 levels.
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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