The market turned strong with the benchmark indices climbing more than 1 percent on July 6 as positive European cues and fall in oil prices lifted sentiment. Buying was seen across sectors with Auto and FMCG indices rising 2.6 percent each, followed by Bank, and Financial Services which gained 1.5 percent.
The BSE Sensex jumped 617 points to 53,751 and the Nifty50 surged 179 points to 15,990 and formed bullish candle on the daily charts.
The broader space also gained momentum with the Nifty Midcap 100 index rising 1.9 percent and Smallcap 100 index up half a percent.
Stocks that were in full action and outperformed broader space included Himadri Speciality Chemical which rallied 15.88 percent to Rs 73.35 and formed strong bullish candlestick pattern on the daily charts with higher than average volumes. Even on weekly basis, there was a bullish candle formation and on the monthly scale, the stock has seen Bullish Engulfing pattern, indicating positive trend.
Kansai Nerolac Paints climbed 8.7 percent to Rs 400 with robust volumes, forming a large bullish candle on the daily scale, while Tube Investments of India, the biggest gainer in the Nifty Auto index, jumped 8.5 percent to Rs 1,975.75 and formed large bullish candle for yet another session with high volumes, while since June 20, it has gained 27 percent.
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:
Himadri Speciality Chemical has consolidated since the last couple of years in the range of Rs 40-70. Recently the stock has given a clean breakout on weekly chart along with volume picking up and RSI (relative strength index) is rebounding from 50 levels, which is an early sign of further up move.
Last but not the least, HSCL has formed a bullish bat on the weekly chart. The best part about this pattern is that it took four years to complete (more time taken to complete is more favourable).
One can buy in small quantities at current levels and another around Rs 65-66 levels with a target of Rs 100 with good support seen at Rs 60 levels.
Though Tube Investments of India looks lucrative at current levels, one should wait because TIINDIA is trading near its previous historical top.
Massive resistance is seen around Rs 2,000-2,020 and CMP is Rs 1,975 along with volume picking up at higher levels which is an exhaustion sign. As of now wait and watch for TIINDIA. If anyone holding then book some profit at between Rs 1,960-2,000.
Since last 6 months, Kansai has corrected almost 46 percent and placed well near its historical support of approximately Rs 380-390. On weekly chart, classic Doji is visible followed by confirmation with big green candle along with good volume which is sign of early reversal in counter. One can buy, add & hold this counter at CMP which upside target Rs 460 and downside good support is seen at Rs 370.
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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