The market gained for the third consecutive session backed by dovish RBI policy and positive global cues on Thursday. The Nifty50 closed a tad above the 17,600 mark with 142 points gain, while the BSE Sensex climbed over 58,900 levels, with 460 points rise.
Sectors like banking and financials, IT, metals and select FMCG stocks supported the market. The Nifty Midcap 100 and Smallcap 100 indices also became a part of the momentum, rising third of a percent and half a percent, respectively.
Stocks that were in focus include Jindal Steel & Power which was the biggest gainer in the futures and options segment, rising 5.86 percent to Rs 440.90, and ONGC which was the top gainer in the Nifty50, climbing 3.14 percent to Rs 169.10, while Radico Khaitan was up 5.36 percent to close at Rs 958.15.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
In this month so far, the stock has rallied over 17 percent. On Thursday, the stock opened with a strong note and successfully cleared the resistance of Rs 430.
On short term time frame, the stock has formed strong price volume breakout pattern. The texture of the pattern suggests breakout action will continue in the near term if stock succeeds to trade above Rs 425 level.
For the swing traders, Rs 425 would be the sacrosanct level, and trading above the same we can expect uptrend continuation wave up to Rs 450-470.
Post strong uptrend rally from Rs 135 to Rs 170, the stock is witnessing narrow range activity. However, on daily charts stock has maintained uptrend formation and consistently trading above short term averages which is broadly positive.
In addition, on daily charts, stock has formed bullish candle reversal formation near 20-day SMA (simple moving average) which indicates high chances of fresh uptrend from current levels.
In short run, Rs 164 or 20-day SMA would be the key level to watch. If stock manages to trade above the same then we can expect uptrend continuation wave up to Rs 177-185.
From the level of Rs 1,275, the stock is witnessed medium term price correction. The stock corrected nearly 30 percent from the level of Rs 1,275. After a sharp fall, finally it took support near 200-day SMA and reversed sharply.
Momentum indicators and reversal formation indicating strong possibility of quick pullback rally, if it succeeds to trade above 200 day SMA or Rs 900 support level.
For the positional traders, Rs 900 would act as a trend decider support level. Above which, the pullback rally will continue up to Rs 1,000-1,050.
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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