It was another strong day for the market as the benchmark indices rallied more than 1 percent on December 2, driven by sectors like IT, auto, financial services, FMCG and metals.
The BSE Sensex rallied 776 points, or 1.35 percent, to close at 58,461, while the Nifty50 closed a tad above the 17,400 mark, with 235-point gains. The broader markets also witnessed buying interest as the Nifty Midcap 100 and Smallcap 100 indices gained 1.14 percent and 0.61 percent, respectively.
Stocks that were in focus include HDFC, which was the third-biggest gainer in the Nifty50, rising 3.85 percent, to Rs 2,807.80, and Persistent Systems, which rallied 4.41 percent to Rs 4,392.60. Apex Frozen Foods was also in action on Thursday, as it was locked in 20 percent upper circuit at Rs 297.50.
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 the 100-day SMA (simple moving average) and reversed sharply. After the 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 2,700, positional traders retain an optimistic stance and look for a target Rs 2,950-3,000.
Fresh buying can be considered now and on dips, if any between Rs 2,800 and Rs 2,750 levels, with a stop loss below Rs 2,700.
After a short-term correction, the stock took the support near Rs 3,800 and turned rapidly. After reversal on intraday charts, it has been consistently forming higher bottom formation which support short-term uptrend.
The stock is comfortably trading above the short-term and medium-term averages. For the trend following traders, Rs 4,175 would be the trend decider level, above the same the uptrend wave will continue up to Rs 4,500-4,750.
Apex Frozen Foods
The stock hit a 20 percent upper circuit on December 2. After strong reversal formation once again it succeeded to close above the 200-day SMA which is broadly positive for the Apex Frozen Foods.
On daily and weekly charts, the stock has formed a promising trend reversal formation, which support further uptrend from current levels.
For the swing traders, now Rs 280 or 200-day SMA would be the trend decider level. If it trades above the same, then we can expect further uptrend up to Rs 320-345. However, if it closes below Rs 280, traders may prefer to exit out from trading long positions.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.