Bulls remained in a strong position, taking the Nifty50 beyond 18,800 level for first time driven by positive global cues, FIIs buying and favourable macroeconomic data, on December 1. In fact it was a good start to the month of December.
Buying in technology, metal, and PSU banks helped the equity benchmarks end at new closing high on Thursday. The BSE Sensex jumped over 180 points to 63,284, and the Nifty50 rose more than 50 points to 18,812, though formed bearish candle on the daily charts due to profit booking at higher levels.
The broader markets also maintained upward journey with the Nifty Midcap 100 and Smallcap 100 indices rising 0.77 percent and 0.4 percent respectively. Cooling down volatility also made the ground favourable for bulls as India VIX was down 3.24 percent to 13.36 levels.
Stocks that were in action included JK Cement, which settled 4 percent higher at Rs 3,201 apiece, the highest closing level since February 10 this year. It formed long bullish candle on the daily charts with healthy volumes. Also the scrip has been making higher highs higher lows for fifth consecutive session, while on the weekly frame, there was higher high higher low for third straight week.
Crompton Greaves Consumer Electrical shares added 2 percent to close at Rs 370.8 apiece and formed bullish candle on the daily charts with above average volumes. Also there was a breakout of downward sloping resistance trend line adjoining September 13 and November 29 this year.
Voltas was also in focus, which closed nearly 3 percent higher at Rs 842.35 apiece and formed long bullish candle on the daily charts with strong volumes. Also if we consider candles of last three days, then there was Morning Star kind of pattern formation, which is a bullish reversal pattern.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
In this quarter so far, the stock rallied over 20 percent. Technically, after a Rs 2,985 resistance breakout the stock consistently holding higher bottom formation. A promising higher bottom formation on intraday and daily charts and incremental volume activity indicating continuation of uptrend in the near future.
However, due to temporary overbought conditions, we could see rangebound activity in the short run. Hence, buying on correction and sell on rallies could be the ideal strategy for the short term traders.
In the near future, Rs 3,100 and Rs 3,050 could act as a key support zones whereas Rs 3,300-Rs 3,350 would be the key resistance zone. Below Rs 3,050, traders may prefer to exit from the trading long positions.
After a medium term correction, eventually the stock took the support near Rs 800 and reversed. Post reversal, the stock has formed higher bottom formation and after a long time it succeed to close above 20-day SMA (simple moving average).
A higher bottom formation on daily and intraday charts and long bullish candle on daily charts indicating continuation of uptrend in the near future.
Unless it is trading below Rs 819, positional traders retain an optimistic stance and look for a target Rs 880-900. Fresh buying can be considered now and on dips, if any between Rs 840 and Rs 830 levels, with a stop-loss below Rs 819.
Crompton Greaves Consumer Electrical
On weekly scale, post sharp decline from the higher levels, the counter is in the accumulation zone where it is trading in a rangebound mode. However, on the daily charts there is a gradual up move in the counter along with incremental volume activity, which suggest a new leg of bullish trend in the near term.
Unless it is trading below Rs 360, positional traders can retain an optimistic stance and look for a target Rs 390-400.
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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