The market extended last week's northward journey and rallied 1 percent, with the Nifty50 closing above the psychological 18,000 mark on January 10, supported largely by banking and financials, and auto stocks.
The broader markets also participated in the run as the Nifty Midcap 100 index was up 0.84 percent and Smallcap 100 index climbed 1.28 percent.
The BSE Sensex jumped 650 points to close near 60,400 levels, while the Nifty50 rose 190 points to tad over 18,000 mark.
Stocks that were in focus include Greaves Cotton, Sunteck Realty and Elgi Equipments which all hit fresh record highs on Monday.
Greaves Cotton rallied 19.69 percent to end at a record closing high of Rs 209.40, Sunteck Realty rose 11.54 percent to see a record closing high of Rs 569.75, and Elgi Equipments was up 10.61 percent to settle at record high of Rs 362.20.
Among others, Chemfab Akalis was locked in the 20 percent upper circuit at Rs 188.10, and Indian Hotels Company also saw buying interest, up 4.45 percent at Rs 194.65.
Here's what Karan Pai of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Greaves Cotton on the weekly time frame can be seen moving higher after correcting about 50 percent of the previous up move from Rs 66-Rs 184. In the week started December 20, 2021, the stock bounced off the Rs 129 mark after which the prices continued to form higher high higher low pattern.
On January 10, 2022, the prices saw massive buying interest and not only tested fresh 52-week highs, but also managed to sustain at higher levels. This up move was backed by above-average volume, indicating participation in the up move.
On the indicator front, the RSI (relative strength index) plotted in the weekly chart is placed above the 50 mark and can be seen moving higher towards the overbought level as the prices move higher, indicating increasing bullish momentum in the prices.
We believe that the investors can continue to hold on to the stock as we expect some up move towards Rs 219 and Rs 244. We also recommend a strict stop-loss at Rs 180 on daily closing basis.
Sunteck from a medium-term perspective can be seen forming a higher high higher low pattern since July 2020. The stock seems to be moving higher after a shallow correction. The prices have been forming a higher pattern since December 27. On January 10, the stock tested a fresh 52-week high and managed to sustain near the same.
On the shorter time frame charts, the prices are seen riding the upper Bollinger bands for the past couple of sessions. These sessions of higher highs were also backed by good volume buildup, indicating participation in the up move.
On the indicator front, the RSI plotted in the medium and the short-term charts can be seen placed above the 50 mark and are moving higher towards the overbought mark, indicating increasing bullish momentum in the prices.
We would recommend investors to hold on to their respective positions as we expect the stock to move higher towards Rs 626 and Rs 690 mark. We will also recommend a strict stop loss of Rs 507 on a daily closing basis.
The stock is in a strong uptrend across all time frames and moving with a higher highs and higher lows formation. After the recent correction from Rs 347 to Rs 263 (in December) the stock has bounced sharply from the lower levels and is back to its life high which indicates strong momentum in the stock.
The Bollinger Bands across daily, weekly and monthly charts are expanding and giving Bullish indications. Investors and traders can continue holding this stock expecting upside to Rs 385 followed by Rs 420 levels. Rs 300-310 will be the downside support for this stock.
Chemfab is moving out of a rounding bottom (accumulation pattern) with highest volume in last 8 months. On the daily charts the stock had formed a strong Bullish candle indicating strong Bullish sentiment in the stock.
The RSI has moved above 70 which confirms the Bullish momentum in the stock.
One can continue holding the stock and expect the stock to move immediately towards Rs 205 and eventually towards Rs 220 levels. Going ahead Rs 175-180 will act as a strong support zone for the stock.
On the mid-term charts, Indian Hotels is moving with higher highs and lows, maintaining a positive trend in the stock. Currently the stock is consolidating in the downward sloping channel and taking support near the 20-week SMA (Rs 186).
On the Indicator front the RSI on weekly timeframe has formed a bullish Hinge near the 50 mark. One can expect momentum to pick up in the stock once Rs 205 level in broken on the upside.
Investors and traders can continue holding the stock and expect the stock to move towards Rs 237. Going ahead, Rs 183-185 will act as a support zone for this counter.
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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