The market closed its last day of October series on a positive note as it reversed all its previous day's losses and gained around half a percent on October 27, led by buying in most of sectors, barring information technology.
The BSE Sensex gained more than 200 points to 59,757, while the Nifty50 rose little over 80 points to 17,737 and formed Hanging Man kind of pattern on the daily charts, which is a bearish reversal pattern formed in an uptrend.
The broader markets also followed suit despite muted breadth. The Nifty Midcap 100 index was up six-tenth of a percent and Smallcap 100 index gained four-tenth of a percent, while 1,051 shares advanced against 922 falling shares on the NSE.
The volatility index India VIX also dropped to 16.60 levels, down 1.67 percent, making the trend favourable for bulls.
Stocks that were in action and performed better than broader markets included RBL Bank which was the biggest gainer in the futures & options segment, rising 10 percent to Rs 136.35, the highest closing level since April 7 and formed strong bullish candle on the daily charts with healthy volumes. Also the stock has recouped all its previous two-day losses.
Phoenix Mills shares rallied 6 percent to end at record closing high of Rs 1,465 and formed robust bullish candle which resembles Bullish Engulfing kind of pattern formation on the daily charts with higher volumes.
JSW Steel was also in action and was the biggest gainer in the Nifty50, rising 5.5 percent to Rs 680 on Thursday on top of 3 percent gains in previous two trading sessions. The stock has seen formation of strong bullish candle on the daily charts with healthy volumes.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
In this month so far, the stock rallied over 23 percent. On last Thursday, the stock gained 10 percent. A promising price volume intraday rally indicating further uptrend from the current levels.
On daily and weekly charts, the stock has formed uptrend continuation formation. Currently, the stock is comfortably trading above 20 and 50 days SMA (simple moving average) of Rs 119 and Rs 121 respectively.
The short term texture of the stock is suggesting strong possibility of continuation of uptrend wave in the short run.
For the swing traders now, Rs 128 would be the key level to watch out, above which the stock could move up to Rs 145-150. On the flip side, below Rs 128 traders may prefer to exit the trading long positions.
In this month so far, the stock rallied nearly 10 percent. On last Thursday, the stock gained 5.5 percent, it also registered a fresh all-time high of Rs 1,495.
On daily and weekly charts, the stock has formed uptrend continuation formation and it also formed higher bottom formation on daily and weekly charts.
The short term texture of the stock is suggesting strong possibility of continuation of uptrend wave in the short run.
Technically, as long as the stock is trading above Rs 1,375 or 50 days SMA (simple moving average), the uptrend wave is likely to continue. Above which, it could move up to Rs 1,550-1,600. On the flip side, below Rs 1,375 it could slip till Rs 1,300-1,280.
After a short term price correction, the stock has formed double bottom formation near 200 days SMA of Rs 644 and bounced back sharply. Post reversal, the stock has formed long bullish candle which support further uptrend.
On last Thursday, the stock has not only cleared 50 days SMA resistance mark Rs 660, but succeeded to close above the same which is broadly positive.
For the short term traders now, 50 days SMA or Rs 660 would act as a trend decider level. Above which, the stock could move up to Rs 690-700. On the flip side, below Rs 660 it could retest the level of Rs 620.
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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