It was another strong day for the market as the benchmark indices rallied over 1.7 percent on December 8, continuing the uptrend for the second consecutive session following a dovish stance taken by the RBI, positive Asian cues, and buying across sectors.
The Nifty50 added nearly 300 points to close above 17,470, the highest closing level since November 25, while the BSE Sensex rallied more than 1,000 points to end at 58,650. The broader markets also traded in line with the frontline indices, with the Nifty Midcap 100 and Smallcap 100 indices rising 1.6 percent and 1.8 percent, respectively.
Stocks that were in focus include Biocon and MCX India which were the top and third biggest gainers in the futures and options segments respectively. Biocon registered 6.27 percent gains at Rs 382.80 and MCX India rallied 5 percent to Rs 1,703.90.
Among others, Bajaj Healthcare was also in action, rising 19.66 percent to Rs 411.10, while Polyplex Corporation hit a record high and crossed Rs 2,000 mark for the first time, climbing 9.43 percent to Rs 2,001.95.
Here's what Gaurav Sharma of Globe Capital Markets, recommends investors should do with these stocks when the market resumes trading today:
After trading with a bearish bias for nearly a month now, MCX posted strong recovery on Wednesday as it gained over 8 percent in day trade, the up move was backed by above-average volume support indicating buyers' interest and strengthening our view point that the stock is most likely to trade with a bullish bias, at least in the near future.
Due to this up move, the stock is now comfortably trading above its important medium and long-term averages (100/200 EMA - exponential moving average).
Considering all this, we see the stock heading north. Short-term traders can buy at CMP for targets close to Rs 2,000 in weeks to come, and keep a stop loss below Rs 2,250.
The stock has been trading with a negative bias since July 2021. On Wednesday, it posted strong recovery as it jumped 20 percent in day trade backed by strong volumes. Current chart pattern suggests continuation of the up move in the immediate near term.
Short-term traders can initiate fresh long positions at CMP for a target close to Rs 460-485 in the near term and maintain closing stop loss below Rs 360.
Biocon
The stock has been trading with bearish bias all throughout this year, has been hitting lower lows since January 2021. It has retraced 61.8 percent of the rise Rs 211-487. It looks very attractive at the current juncture after posting fresh breakout on daily charts. We see this as a fresh buying opportunity as the stock is trading very close to its crucial support levels.
Short-term traders can take fresh long positions at CMP for targets close to Rs 400-440 in the weeks to come, from a longer term perspective, Rs 480 is also possible. Traders are advised to maintain closing stop loss below Rs 350.
It has been a consistent performer, has been hitting higher highs from quite a while now. The up move has been so strong and steady that the stock was unaffected from the recent sell-off in the Indian equity markets. This clearly indicates that the stock is in strong hands and the upward move is likely to continue.
We don't see the stock losing momentum any time soon. Hence, dips should be considered buying opportunity for Rs 2,200-2,400 targets, traders must maintain stop loss below Rs 1,700.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
