The market mood seems to have turned healthy especially ahead of the Union Budget as the benchmark indices clocked more than 1 percent gains with support from most of key sectors. Positive global cues also aided the rally at Dalal Street.
The BSE Sensex rallied more than 800 points to close a tad above 58,000, and the Nifty50 surged more than 230 points to end at 17,340, while the Nifty Midcap 100 and Smallcap 100 indices also joined the bulls party, climbing 1.57 percent and 1.13 percent, respectively.
Stocks that were in focus include Info Edge India, which was the biggest gainer in the futures and options segment, rising 11.23 percent to Rs 4,900.80. Amber Enterprises rallied 13.16 percent to Rs 3,610.05, Route Mobile jumped 11.63 percent to Rs 1,796.40, and MMTC climbed 9.89 percent to Rs 61.10.
Here's what Malay Thakkar of GEPL Capital, recommends investors should do with these stocks when the market resumes trading today:
Info Edge moved above the previous week's high after bouncing off the multiple touch-point level of Rs 4,240 and ended the session with a gain of 11.23 percent. This up move was backed by good volume buildup, indicating participation in the up move.
On the indicator front, the RSI (relative strength index) plotted in the weekly chart can be seen moving higher towards the 50 mark after forming a bullish hinge near the 30 mark, indicating increasing bullish momentum in prices.
Going ahead, we expect the prices to witness a pullback towards the 200-Day SMA (simple moving average) (Rs 5,517). If the prices managed to move above the Rs 5,517 mark, we might see the prices head higher towards the Rs 6,012 and Rs 6,320 mark eventually.
Investors holding this stock can continue to hold the stock with a strict stop-loss of Rs 4,300 on daily closing basis and expect the prices to move higher towards Rs 5,600 and Rs 6,320 mark eventually.
Amber for the past couple of weeks has been moving in a range of Rs 3,800-2,980. The prices are heading towards the upper edge of the consolidation after bouncing off the Rs 3,000 mark. This up move was backed by a good volume buildup, indicating good participation in the up move.
On the indicator front, the RSI plotted on the weekly time frame can be moving higher towards the over-bought level after forming a bullish hinge near the 50 mark, indicating increasing bullish momentum in the prices.
Going ahead, we might see acceleration in the bullish momentum once the prices break above the previous swing high of Rs 3,800, after which we might see the prices head towards Rs 4,062, followed by Rs 4,388.
Investors holding this stock can continue to hold on it with a stop-loss of Rs 3,000 on daily closing basis and expect a target of Rs 4,062 and Rs 4,388.
After the recent correction, Route Mobile has bounced back sharply from lower levels with strong volumes. The stock managed to breach and closed above the 20-Day SMA (Rs 1,777) during Monday's session.
The RSI indicator is confirming the breakout and crossed the 50 mark, indicating increasing bullish momentum in the trend.
Investors and traders can continue holding the stock and expect upside towards Rs 1,920 followed by Rs 2,020 levels. A stop-loss of Rs 1,710 should be maintained for this setup.
MMTC is moving with higher highs and lows formation on weekly charts. The stock formed strong bullish candles for the past 3 weeks with good volume buildup and is attempting to break above the previous Swing High.
The RSI indicator plotted on weekly has entered the overbought strong indicating bullish momentum in the trend.
If the stock manages to sustain above the Rs 60 mark, one can expect it to move higher towards Rs 68 followed by Rs 72 levels. A strict stop-loss of Rs 55 should be maintained for this trade.
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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