Positive global cues and buying across sectors helped the market close higher for third consecutive session on September 12. The benchmark indices settled at higher closing level since August 18.
The BSE Sensex closed above psychological 60,000 mark, rising more than 300 points to 60,115, while the Nifty50 rallied more than 100 points to 17,936 and formed small bodied bullish candle on the daily charts.
The outperformance was seen in broader markets on positive breadth. The Nifty Midcap 100 index gained 1 percent and the Smallcap 100 index rose 1.3 percent as three shares advanced against two declining shares on the NSE.
Stocks that outpaced broader markets included Navin Fluorine International, which gained 6.6 percent to end at record closing high of Rs 4,662 and formed robust bullish candlestick pattern on the daily charts with above average volumes. Also it has seen a strong breakout of long upward moving resistance trend line (adjoining September 6, 2021; December 28, 2021; and August 5, 2022).
KEC International jumped more than 9 percent to Rs 443.3, forming large bullish candle on the daily charts with strong volumes after a month long consolidation. It has seen a gap up opening on Monday and intraday climbed above the high of previous big red candle seen on August 5.
Nazara Technologies rose nearly 5 percent to Rs 770.60, the highest closing level since May 2 and formed bullish candle on the daily charts with robust volumes for yet another session. In fact, it has given a close above the previous day's high point and has seen a breakout of upward moving resistance trend line adjoining previous swing highs.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Navin Fluorine is currently trading at its all-time high level which indicates that the stock already is in good momentum.
Around the level of Rs 4,325, we can spot change in polarity by the prices which shows the Bullish undertone of the stock.
Bollinger band plotted on the Daily timeframe is expanding which reflect the rising volatility in the prices for upside move.
The RSI (relative strength index) on the daily timeframe have shown range shift pointing towards the rising momentum in the prices.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 5,284 with a stop-loss of Rs 4,127 on the closing basis.
Nazara after a downtrend made a base which indicated a pause in the downtrend.
Prices in the last trading session have given a breakout from the rectangle pattern which indicates beginning of the uptrend, whereas the rectangle pattern witnessed a shortfall in its prices which shows the enthusiasm by the crowd for the breakout.
The breakout is accompanied by high volumes.
The stock has sustained above 50 days EMA (exponential moving average) confirming the reversal of trend to the upside.
RSI is currently trading above 50 level on both daily as well as weekly timeframe which tells that the stock has the momentum to go higher.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 980 with a stop-loss of Rs 693 on the closing basis.
On weekly time frame of KEC, we can spot that prices have taken multiple support from the 50 percent of Fibonacci retracement level of prior advance from Rs 155 level (April 2020) to Rs 550 level (October 2021).
The stock in the last trading session have sustained above Upper Bollinger band which indicates that volatility in the prices for up move have started to rise.
The up move have been followed by high volumes pointing toward bullish sentiment by the crowd.
RSI is currently trading above 50 Level on both daily as well as weekly timeframe which tells that the stock has the momentum to go higher.We recommend Trader and Investors to hold this stock for the potential upside till Rs 500 mark with a stop-loss of Rs 400 level on the closing basis.
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