The market shrugged off weak global counterparts and marked a nice journey taking the Nifty50 beyond 18,604, the previous record high, intraday on November 28. The rally was largely supported by oil & gas stocks as oil prices fell further in international markets amid demand outlook concerns.
The BSE Sensex rallied more than 200 points to 62,505, while the Nifty50 jumped 50 points to 18,563 and formed bullish Engulfing candle on the daily charts.
Option data indicated that traders are eyeing next psychological 19,000 mark, may be in current month, where the maximum open interest developed, with crucial support at 18,000 and immediate support at 18,500.
The broader markets also participated with the Nifty Midcap 100 index rising seven-tenth of a percent and Smallcap 100 index gaining 1.2 percent on positive breadth.
Stocks that performed better than broader markets included Tanla Platforms which surged 11 percent to Rs 818, the highest closing since October 14, forming a big bullish candle on the daily charts with strong volumes after more than a month consolidation. Also the stock has given a nice breakout of long downward sloping resistance trend line adjoining June 16 and October 13 this year.
Apollo Tyres and Delta Corp were amongst top five gainers in the futures & options segment. Apollo Tyres shares gained 6.65 points to end at record closin high of Rs 312.70, forming long bullish candle on the daily charts with healthy volumes and making higher highs higher lows for second straight session. Also there was a horizontal resistance trend line breakout adjoining resistance points of September and November.
Delta Corp climbed 5 percent to Rs 232, the highest closing level since May 24 this year and formed long bullish candle on the daily charts with above average volumes. Also there was a breakout of more than a month long consolidation.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Apollo Tyres is currently trading at its record high level, which tells that the stock already is in strong momentum.
In the last trading session, prices gave breakout from the Cup & Handle Pattern, indicating beginning of the trend on the upside. The breakout is confirmed by the higher volumes.
The Bollinger band on the daily timeframe has started to expand, indicating rising volatility of the prices.
RSI (relative strength index) on the daily timeframe have shown a bullish reversal, pointing towards the rising momentum of the underlying.
We recommend trader and investor to buy this stock for the target of Rs 340 where the stop-loss must be Rs 290 on the closing basis.
Delta Corp is currently rising with Higher High, Higher low formation, showing positive undertone of the stock.
The stock in the latest trading session have given a breakout from the ascending triangle pattern indicating beginning of the trend to the upside.
The Bollinger bands have opened with high volumes indicating rising volatility of the prices for an up move.
RSI on the daily timeframe have shown a breakout too which here reflects the strong momentum built up.
We recommend trader and investor to buy this stock for the target level of Rs 260 where the stop-loss must be Rs 222 on the closing basis.
Prices after a strong downtrend while forming lower low, lower High. Post July 2022 prices have started to stay in sideways territory. This shows a formation of base at this lower level being built.
The stock in the latest trading session have given a breakout from the descending triangle pattern which indicates reversal to the upside.
Prices on July 27 made a low at Rs 584.50, which was accompanied by strong volume participation, this acted as an exhaustion volume for the trend.
Prices have surpassed the 50-day EMA (exponential moving average), which confirms the reversal of the trend to the upside.
RSI on the Daily timeframe have shown a breakout too which here reflects the strong momentum built up.
We recommend trader and investor to buy this stock for the target of Rs 990 where the stop-loss must be Rs 733 on the closing basis.
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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