The market had a great day after a day of consolidation, helped by rebound in the last hour of trade on November 15, as the BSE Sensex has seen a record close, tracking the uptrend in Asian counterparts and hope for easing inflation concerns.
The Nifty50 gained 74 points to close tad above 18,400 and formed bullish candle on the daily charts, while the BSE Sensex climbed nearly 250 points to 61,873.
But the mood in broader markets remained lacklustre with the Nifty Midcap 100 index closing flat and the Nifty Smallcap 100 index up 0.26 percent, while the volatility remained at comfortable levels, with the India VIX falling 1.84 percent to 14.64 levels.
Stocks that performed much better than broader markets included Gujarat Gas which was the biggest gainer in the futures & options segment, rising 6 percent to Rs 513.40 and formed strong bullish candle on the daily charts with healthy volumes.
Muthoot Finance shares gained 3 percent at Rs 1,120 and formed long bullish candlestick pattern on the daily charts with above average volumes.
Sobha also rallied 3 percent to Rs 652 and formed healthy bullish candle on the daily charts for yet another session with above average volumes. The stock has been making higher high higher lows formation for third straight session.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
After the free fall started from November 2021 till June 2022 resulted in a 43 percent decline in price. On a weekly scale, the counter has formed a bullish Shark with a potential reversal zone of Rs 1,000-1,020. Along with the double bottom near mentioned PRZ (potential reversal zone) which is adding more confirmation for early reversal in said counter.
From the Indicator perspective, weekly RSI (relative strength index) has formed a complex structure along with the MACD (moving average convergence and divergence) bullish cross which further confirms the upside in the counter.
One can buy in small tranches at current levels and buy another tranche at around Rs 1,090-1,100 levels (if again tested). The upside is expected till Rs 1,220 and support is seen around Rs 1,060.
For the last 2 months, Sobha has corrected 20 percent. At the current juncture, it has made a nice base around 0.50 retracement of its previous upmove which started from Rs 478 levels till Rs 751 levels (refer to the chart).
During the entire fall volume is almost negligible which alludes that selling pressure is dwindling, thus hinting possible upside in the counter.
On the indicator front, the momentum 21 days Rate of Change (RoC) has turned positive and it is placed at 1.77 along with the daily MACD has transformed into a bullish crossover thus ratifying our bullish view in the said counter.
Last but not least since the last couple of trading sessions buying interest is picking up on the back of the sufficient volume.
One can buy at current market price (Rs 652) with an upside expected till Rs 710 and credible support is expected around Rs 615.
Gujarat Gas has corrected almost 49 percent from its top of Rs 780 which was registered on August 2, 2021. On a weekly scale, it has taken support near Rs 470-475 levels.
Recently on a weekly scale, the stock has formed a tweezer bottom near mentioned support levels and that is adding more confirmation of further upside in the counter.
In addition to the above-discussed technical reasoning, weekly RSI has displayed an impulsive structure near the oversold zone along with a daily RoC of 21 days that has turned positive which is adding more strength to the said counter.
Thus we advise traders to buy the stock for an upside target of Rs 565 with a stop-loss of Rs 485.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
