Bulls seem to have charged up after a day of consolidation, pushing the market beyond the 20,000 mark on the Nifty, at close on September 13. This rally was backed by banks. The index can march towards 20,200-20,500 in coming sessions, if it gives a strong closing above the 20,100 level, while the immediate crucial support remains at 19,900, experts said.
The Nifty50 jumped 77 points to 20,070, and the BSE Sensex gained 246 points at 67,467, while the Nifty Midcap 100 and Smallcap 100 indices climbed 0.2 percent and 1 percent respectively.
The market breadth remained positive with a 2:1 ratio.
The Bank Nifty was the star performer among leading sectors, rising 398 points to 45,909, while the Nifty IT fell 91 points to 32,887 on profit taking.
Stocks that outperformed broader markets included Punjab National Bank, Aarti Industries, and ITI. Punjab National Bank has formed a robust bullish candlestick pattern, which resembles a Bullish Engulfing kind of pattern on the daily charts, indicating the possibility of more positivity in the counter. The stock jumped 8.5 percent to Rs 72.55, the highest closing level since July 19, 2019, with strong volumes.
Aarti Industries has also formed a Bullish Engulfing pattern on the daily charts while taking support at the 100-day EMA (exponential moving average - Rs 499). The stock jumped 5.6 percent to Rs 526, with above-average volumes. The stock seems to have bottomed out in August and has seen a breakout of downward downward-sloping resistance trendline on Wednesday.
ITI continued its sharp uptrend for the third consecutive session, rising 19.4 percent to end at a record closing high of Rs 199.65, and formed a robust bullish candlestick pattern on the daily timeframe with strong volumes. The stock gained more than 60 percent during the current week.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Recently the said counter has given a clean breakout on a monthly scale (refer to the chart). Moreover, breakout seems genuine since it is complimented by massive volume on a daily scale.
On the indicator front, RSI (relative strength index) on a monthly scale has entered above the 70 zone, further hinting towards bullish bias in the counter.
One can buy in the zone of Rs 71-72 with an upside target of Rs 90 and with a stop-loss of Rs 61 on a daily close basis.
For the last two months, the said counter has been consolidating in the zone of Rs 450-475. At the start of September 2023, it gave a clean breakout from the said zone and comfortably sustained above it.
Additionally, there is massive support near Rs 475 in the form of central pivot range (refer to the chart). On the indicator front, daily stochastics are showing strength since it is trading above 80 levels which further hints towards a bullish bias in the counter.
One can buy in the zone of Rs 520-528, with a target of Rs 620 and a stop-loss of Rs 470 on a daily close basis.
Though the said counter looks lucrative due to the recent rallies, one needs to be cautious since it is trading way above all exponential averages. As we advance, we may see some profit booking at the counter.
If someone has already bought, then consider some partial profit booking in the zone of Rs 200-210. As of now wait and watch for fresh longs.
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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