The market had a good run on yet another session with the Nifty50 reclaiming the 16,700 mark on July 22 and seems to be preparing the ground to cross the 17,000 levels in the coming sessions. The benchmark indices extended their rally for the sixth consecutive day, backed by positive global cues, FIIs buying and stability in oil prices.
The BSE Sensex rallied 390 points to close above 56,000, and the Nifty50 gained more than 100 points to 16,720 levels and formed a bullish candle on the daily charts as well as weekly scale. The indices climbed more than 4 percent last week.
The broader markets had a muted day on Friday as the Nifty Midcap 100 index ended on a flat note and the Nifty Smallcap 100 index gained 0.37 percent.
Stocks that were in action included Rain Industries which climbed 4.3 percent to Rs 161.6, forming bullish candle on the daily charts. It has decisively broken the long downward sloping trendline last week and also closed above large bearish candle placed on June 16, indicating bullish bias.
Balaji Amines jumped more than 6 percent to Rs 3,319.6, the highest closing level since April 8, which also has decisively broken long downward sloping trendline last week and formed big bullish candle on the daily charts with significantly higher volumes.
Kajaria Ceramics rose 5 percent to Rs 1,128.1, the highest closing level since February 22 and formed a large bullish candlestick pattern on the daily charts for two consecutive sessions with very high volumes. It has also broken long downward sloping trendline with high volumes on Thursday itself, indicating the positive trend.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
On the daily time frame, the stock has confirmed a "down-sloping channel" breakout at Rs 156 levels. This breakout is accompanied with huge volumes indicating increased participation at breakout zones.
The stock is well placed above its 20 and 50 days SMA (simple moving average) which reconfirms bullish sentiments. The daily Bollinger Band buy signal indicates rising momentum.
The daily and weekly strength indicator RSI (relative strength index) is in bullish mode indicating rising and sustained strength on a short to medium term time frame.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 185-200 with downside support zone of Rs 141 levels.
On the weekly time frame, the stock has confirmed a "Descending Triangle" breakout at Rs 3,130 levels on a weekly closing basis indicating trend reversal. This breakout is accompanied with huge volumes indicating increased participation.
The daily "Bollinger Band" buy signal indicates rising momentum. The daily and weekly strength indicator RSI is in bullish mode indicating rising and sustained strength. This buying momentum was observed around the 20, 50 and 100 days SMA which reconfirm bullish sentiments.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 3,600-3,750 with downside support zone of Rs 3,100-3,000 levels.
On the weekly chart, the stock has confirmed “multiple resistance" breakout at Rs 1,100 levels. This breakout is accompanied with huge volume spurt indicating increased participation at breakout zone.
This buying momentum was observed from 20, 50 and 100-day SMA support zone which reconfirm bullish sentiments. The daily and weekly "Bollinger Band" signals increased momentum.
The daily and weekly strength indicator RSI is in bullish mode which supports rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,220-1,270 with downside support zone of Rs 1,050-1,030 levels.
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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