The market kept surging for the third straight session on May 30 on the back of supportive global cues. Buying was seen across sectors, barring pharma.
The BSE Sensex rallied more than 1,000 points to 55,926, and the Nifty50 climbed over 300 points to 16,661, while the broader space had a better show than benchmarks as the Nifty Midcap 100 index gained 2.4 percent and Smallcap 100 index rose 3 percent.
India VIX, which measures the expected volatility in the market, fell by 6.98 percent to 19.98 levels, giving a comfort for bulls.
Stocks that were in action included Gujarat Ambuja Exports which rallied 12.44 percent to Rs 340, Adani Total Gas which jumped 5.4 percent to Rs 2,589.5, and Jubilant Foodworks which surged 10 percent to Rs 567.
Here's what Malay Thakkar of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
During the recent correction from the highs of Rs 394, Gujarat Ambuja Exports took support at the 50 percent Fibonacci retracement level (Rs 150-394 rally) and the stock saw a sharp bounce from the same levels.
The 50 percent Fibonacci retracement level also confluences with the Change in Polarity level at Rs 270 mark.
The stock has started the current week on a positive note as it went on to break the previous swing high level.
We advised traders and investors to continue holding the stock, and a break above Rs 345 will increase the momentum in the counter and take the stock higher towards Rs 375 followed by Rs 390 levels.
Rs 315-320 level on downside will act as a support zone for the stock.
After the strong up move in March 2022, Adani Total Gas went into a consolidation and moved in a downward sloping channel.
In the current week the stock has broken out of a 2 months long consolidation with above average volumes.
The RSI indicator is also giving a trendline breakout and has crossed the 60 mark indicating bullish momentum in the counter.
We advised traders and investors to continue holding the stock and expect upside towards Rs 2,790 followed by Rs 2,935 levels. Rs 2,400-2,450 zone would act as a major support on the downside.
Jubilant Foodworks has given a breakout of a falling trendline with increase in volume activity. With the breakout the stock formed a strong bullish candle and closed at 2-weeks high level.
The RSI indicator plotted on daily is signalling a bullish momentum divergence in the counter. We advised traders to continue holding the stock for upside towards Rs 600 followed by Rs 630 levels.
Rs 530 level on downside will act as support for the stock.
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