The fall in oil prices, FIIs buying, and rally in banking and financial services and IT stocks helped the benchmark indices snap up a five-day consolidation range and close with a 1 percent gain on September 8.
The BSE Sensex surged more than 650 points to 59,688, and the Nifty50 rose nearly 175 points to 17,799, while the Nifty Midcap 100 index gained 0.2 percent and the Smallcap 100 index 1 percent.
Volatility also cooled down, making the trend favourable for bulls. India VIX, which gauges volatility in the market, fell by 5.48 percent to 18.31.
Stocks that were in action included Shree Cements which jumped 5.5 points to 24,458 and formed a bullish candlestick pattern on the daily charts with robust volumes, continuing uptrend for the fourth straight session. The stock has seen a breakout of long downward sloping resistance trend line adjoining September 15, 2021 and April 29, 2022.
Thyrocare Technologies was up 4.7 percent at Rs 689 and formed a bullish candle on the daily charts with large volumes, maintaining uptrend for fifth straight session, while Schneider Electric Infrastructure surged 10 percent to Rs 157 and has seen formation of bullish candle on the daily charts with robust volumes.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
In this week so far, the stock rallied over 15 percent. After a minor correction, the stock took the support near Rs 21,000 and bounced back sharply. It also cleared the 200 days SMA (simple moving average) mark successfully.
On daily and weekly charts, it has formed long bullish breakout candle which indicating continuation of uptrend in the near future.
For the swing traders now, Rs 23,300 or 200 days SMA would be the sacrosanct level. If it trades above the same, we can expect uptrend continuation wave up to Rs 25,500-26,500. On the flip side, below Rs 23,300 uptrend would be vulnerable.
After a long correction eventually, the stock took the support near Rs 600 and bounced back sharply. Post reversal, the stock rallied over 15 percent (rallied from 626 to Rs 723).
The stock has formed strong reversal formation but the medium term structure of the chart is still in to the weak side.
For the bulls, Rs 660 would be the important support level and if, the stock manages to trade above the same, we could expect continuation of uptrend rally till Rs 750-760. On the flip side, below Rs 660 it could slip till Rs 620-610.
Schneider Electric Infrastructure
In this quarter so far, the stock has rallied nearly 60 percent. On last Thursday, the stock opened with a gap up and rallied over 10 percent, it also hit a fresh 52–week high of Rs 167.85.
A strong bullish breakout candle on daily and weekly charts suggesting further uptrend from the current levels. On the short term time frame stock has formed strong price volume breakout continuation formation.
The texture of the pattern suggests uptrend momentum will continue in the near term. For the swing traders now, Rs 150-147 would be the sacrosanct levels, and trading above the same we can expect uptrend continuation wave up to Rs 170-177.
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