The market rebounded smartly by showing a recovery of all previous day's losses and gained half a percent on January 2, the first trading day of New Year 2023. Buying was also seen in most of sectors barring pharma.
The BSE Sensex climbed more than 300 points to 61,168, while the Nifty50 rose nearly 100 points to 18,197 and formed bullish candle on the daily charts.
The similar kind of mood was also seen in the Nifty Midcap 100 and the Smallcap 100 indices rising nine-tenth of a percent and seven-tenth of a percent, respectively, as about two shares gained for every declining share on the NSE.
Stocks that were in action included Tata Steel which was the fourth largest gainer in the futures & options segment rising nearly 6 percent to Rs 119.25, the highest closing level since May 9, 2022 and formed large bullish candle on the daily charts with strong volumes, making higher highs higher lows for second straight session. The stock has seen a breakout of small downward sloping resistance trend line adjoining December 5 and December 30, 2022.
IRB Infrastructure Developers shares gained 8 percent to end at record closing high of Rs 314 and formed strong bullish candle on the daily scale with healthy volumes, making higher high higher low for second consecutive session. There was a decisive breakout of downward sloping resistance trend line adjoining December 14, December 20 and December 21, 2022.
Jindal Stainless was also in focus, climbing 6 percent to see record closing high of Rs 253.3. It has seen a bullish candlestick pattern on the daily charts for third straight session with above average volumes.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
It appears that the IRB has been in an uptrend, as indicated by the formation of higher highs and higher lows. This trend has been further supported by the fact that the stock has been able to maintain a bullish trendline since October 2022.
The stock has shown a bounce to the upside which was preceded by the prices taking support from the neckline of Double Bottom pattern. The breakout was witnessed on November 29, 2022 indicating beginning of an uptrend.
The breakout is confirmed as it is followed by higher volumes.
The Bollinger bands have started to expand which shows the rising volatility for an up move. The momentum indicator RSI (relative strength index) has shown a bullish reversal which, reflects strong momentum in the prices.
We recommend Investors and trader to buy this stock for the target of Rs 350 where the stop-loss must be Rs 285 on the closing basis.
Tata Steel surpassing the swing high of Rs 116.10 level (December 5, 2022) initiates the higher highs, higher lows formation. The stock in the latest trading session has given a breakout from the Cup & Handle Pattern pointing towards beginning of the trend to the upside.
The stock has witnessed golden cross on daily charts confirming intact uptrend. The momentum indicator RSI has shown a bullish reversal which points towards the rising momentum of the prices.
We recommend investors and trader to buy this stock for the target of Rs 140 where the stop-loss must be Rs 110 on the closing basis.
Jindal Stainless is currently trading at its record high which tells that the stock already is in strong momentum. The stock the prior week gave a breakout from rounding bottom pattern, indicating beginning of the trend to the upside.
The ratio charts against Nifty Metal is rising which shows the outperformance from the stock.
The stock is currently trading above its key moving averages (50, 100 & 200-day EMA - exponential moving average) confirms the uptrend.
RSI plotted on the weekly timeframe is rising and have sustained above 60 mark which reflects the rising momentum of the underlying trend.
We recommend Investors and trader to buy this stock for the target of Rs 315 where the stop-loss must be Rs 215 on the closing basis.
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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