The market hit fresh record highs with the Nifty50 crossing 18,000 mark for the first time on October 11, though there was some profit-booking at higher levels amid volatility in late trade. The benchmark indices ended at record closing highs with the BSE Sensex staying above 60,100 levels and the Nifty50 closing just a shade below 18,000 levels.
Banking and financials, auto, FMCG, and select pharma stocks helped the market close higher. The broader markets continued to outshine equity benchmarks as the Nifty Midcap 100 gained 0.61 percent and the Smallcap 100 index was up 1.16 percent.
Stocks that were in focus include room air conditioner original equipment manufacturer Amber Enterprises India which touched a fresh record high of Rs 3,770.80 before closing 3.91 percent higher at Rs 3,639.10, and power trading platform Indian Energy Exchange also hit an all-time high of Rs 798.70, before closing at Rs 780.90 with 12.21 percent gains, which was the biggest gainer in the F&O segment.
Power generation company Tata Power, too, jumped to fresh record high of Rs 193.70 and finally settled at Rs 191.50, up 8.28 percent. It was the fourth biggest gainer in the F&O segment.
Here's what Jatin Gohil of Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:
Indian Energy Exchange
The stock extended gain after upward consolidation and recorded new high of Rs 798.70 on October 11. Since June 2021, the stock ended month on a positive note and reported over 115 percent rise so far.
Its key moving averages are sloping upwards on medium-term as well as long-term timeframe chart. As per the current set-up, we believe that the prevailing rising trend will continue, which could lead the stock towards Rs 1,000.
Fresh long position can be initiated at current juncture and on dips towards Rs 715. In case of decline, the stock will find support at Rs 635.
Tata Power Company
In February 2021, the stock witnessed a breakout from falling channel and resumed its northward journey. The stock zoomed 153 percent YTD (year-till-date).
The key technical indicators are positively poised and major moving averages are sloping upwards. We believe that undergoing positive momentum will continue, which could take the stock towards Rs 280 in the long run.
Though overall view is bullish for stock and power sector, higher level profit-booking cannot be ruled out. Fresh long position can be initiated only on dips towards Rs 175.
In case of decline, the stock will find support at around Rs 135, which coincides with its 20-week EMA (exponential moving average).
Amber Enterprises India
The stock retraced 35 percent of prior upmove (Rs 920.90-3,662) in May 2021 and resumed its upmove. On October 11, the stock recorded a new high of Rs 3,770.80.
Major technical indicators are in favour of the bulls. We believe the stock will keep exploring the uncharted territory and will move towards Rs 5,400, which coincides with its 100 percent Fibonacci Extension of prior upmove.
Fresh long position can be initiated at current juncture and on dips towards Rs 3,525. In case of decline, its prior swing low will work as a strong reversal point, which is placed at Rs 2,680.
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