The market recouped not only all its previous two-day losses in a single day but also climbed further to hit the highest level of the current year as bulls returned in full throttle on Friday. The rally in global peers after a falling US inflation, raising hopes for less hawkish rate hikes by the US Federal Reserve, and a fall in the US dollar index lifted the market sentiment.
The BSE Sensex jumped nearly 1,200 points to 61,795, while the Nifty50 rallied more than 300 points to 18,350 and formed bullish candlestick pattern on the daily charts.
The further drop in volatility also raised confidence among traders. India VIX, the fear index fell by 7.5 percent to 14.41 levels.
But the mood was quiet in broader markets, as the Nifty Midcap 100 and Smallcap 100 indices gained 0.07 percent and 0.38 percent respectively.
Stocks that were in action included Zomato, which surged nearly 14 percent to Rs 72.8, forming robust bullish candle on the daily charts with healthy volumes. Also the stock has broken long horizontal resistance trendine adjoining several highs.
Swan Energy shares also saw huge buying interest on last Friday, climbing nearly 13 percent to Rs 244 and formed long bullish candle on the daily charts with large volumes. It has broken long downward sloping resistance trend line adjoining May 4 and November 1 this year.
HDFC was the biggest gainer in the Nifty50, rising 6 percent to Rs 2,651.70 and formed robust bullish candle on the daily charts with high volumes after consolidation for several sessions. Also it has given a healthy breakout of long downward sloping resistance trend line adjoining November 15, 2021 and November 9, 2022.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:.
On the daily and weekly chart, the stock has decisively broken out its one year "down-sloping" trendline at Rs 68 levels on a closing basis. This breakout is accompanied with huge volumes representing increased participation. This buying momentum was observed from its 20, 50 and 100 day SMA (simple moving average) support zone.
The daily and weekly strength indicator RSI (relative strength index) is in positive terrain which indicates rising strength. The daily "Band Bollonger" buy signal indicates increased momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 85-98 with downside support zone of Rs 65-60 levels.
The stock has recaptured its 20, 50, 100 and 200 days SMA and rebounded sharply. The stock has gained 13 percent along with huge volumes representing increased participation near the major support zone of Rs 200 levels.
The daily "Band Bollonger" Buy signal indicates increased momentum. The daily, weekly and monthly strength indicator RSI is in positive terrain which indicates rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 280-300 with downside support zone of Rs 210-200 levels.
With last week's strong up move the stock has decisively broken out its multiple resistance zone of Rs 2,520-Rs 2,500 levels on a weekly closing basis. This breakout is accompanied with huge volumes indicating increased participation.
On the daily and weekly chart, the stock has witnessed trend reversal forming a series of higher tops and bottoms.
Huge and rising volumes were observed on the daily and weekly time frame representing increased participation. The stock is well placed above its 20, 50, 100 and 200 days SMA which reconfirms bullish sentiment.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,820-Rs 2,900 with downside support zone of Rs 2,520-2,460 levels.
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