The market sustained its rally for the third straight session with the benchmark indices gaining seven-tenth of a percent on December 23, supported by positive global cues and buying across sectors, barring metals.
The BSE Sensex jumped nearly 400 points to close above 57,300, and the Nifty50 soared more than 100 points to finish above 17,050 levels, while the broader markets registered more gains than the benchmark indices. The Nifty Midcap 100 index was up 0.9 percent and Smallcap 100 index jumped 1.27 percent.
Stocks that were in focus include Firstsource Solutions which was the biggest gainer in the futures and options segment, rising 9.3 percent to Rs 175.05, and Radico Khaitan which jumped 5.4 percent to Rs 1,179.65. MMTC was also in action, surging 9.81 percent to Rs 47.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
After a short-term price correction, the stock took the support near 200-day SMA (simple moving average) and reversed sharply. After reversal, the stock has formed a long bullish candle which support further uptrend.
In addition, a strong intraday price-volume rally and promising trend reversal formation also support short-term uptrend. Unless it is trading below Rs 165 or below 200-day SMA, positional traders retain an optimistic stance and look for the upside of Rs 185-196.
Fresh buying can be considered now and on dips, if anywhere between Rs 175 and Rs 165 with a stop-loss below Rs 165.
Radico Khaitan has formed a double-bottom formation near 50-day and 20-day SMA. The stock is trading near Rs 1,200 breakout level and the texture of the chart suggests strong possibility of fresh breakout in the near term.
In addition, after a long time on the weekly charts, it succeeded to close above Rs 1,150 resistance level which is broadly positive.
We are of the view that Rs 1,100 or 10-day SMA would act as a key support level. Above this, the uptrend formation will continue till Rs 1,275-1,325.
After a sharp pullback rally from Rs 35 to Rs 47, the stock witnessed short-term price correction. After the short-term correction, eventually it took the support near important retracement level and reversed sharply.
On the daily charts, it has created a higher bottom formation and after a strong intraday price volume activity, the stock is trading near 200-day SMA.
For the breakout traders, 200-day SMA or Rs 48 would be the immediate hurdle. Above the same, the breakout continuation formation will continue till Rs 50-53. On the flip side, below Rs 45 uptrend would be vulnerable.
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