The strong rebound following positive global cues and decline in crude oil prices on October 7 helped the market recover nearly 90 percent of loss seen in the previous session, ahead of interest rate decision by the Monetary Policy Committee scheduled later today.
The BSE Sensex strongly closed above 59,600 mark with nearly 500 points gains, and the Nifty50 gained around 140 points to close near 17,800, supported by auto, realty, IT and private banks.
The Nifty Midcap 100 and Smallcap 100 indices added 1.88 percent and 1.22 percent respectively, outperforming frontliners.
Stocks that were in focus included jewellery-watch-to-eyewear maker Titan Company hit a fresh record high of Rs 2,384.25, before closing with gains of 10.6 percent at Rs 2,375.35 and was the second biggest gainer in the F&O segment, while automobile company Tata Motors was the star performer in the Nifty50 with 12.04 percent gains at Rs 376.50 which hit a fresh 52-week high of Rs 383.
Mumbai-based real estate firm Oberoi Realty was the second largest gainer in the Nifty Realty index, climbing 9.3 percent to close at Rs 937.45.
Here's what Shrikant Chouhan of Kotak Securities, recommends investors should do with these stocks when the market resumes trading today:
The stock has rallied over 10 percent on October 7. On Thursday, the stock opened with a gap-up and quickly cleared the psychological Rs 2,300 resistance mark with a strong volume activity.
On a short-term time frame, the stock has formed strong price volume breakout pattern. The texture of the pattern suggests breakout action will continue in the near term if it succeeds to trade above Rs 2,300 level.
For the breakout, Rs 2,300 would be the sacrosanct level and with trading above the same, we can expect, uptrend continuation wave up to Rs 2,425-2,575. On the flip side, below Rs 2,300 uptrend would be vulnerable.
On daily and weekly charts, the stock has formed a strong higher bottom series formation. On daily charts, it has formed strong bullish price volume breakout formation. The promising daily and weekly trade set-up indicates further upside from the current levels.
Another important thing is that it is trading well above the medium-term and short-term averages along with modest volume activity, which support short-term uptrend.
For the positional traders, Rs 360 and Rs 355 would act as important support levels. And, if the stock manages to trade above the same, we can expect continuation of uptrend wave up to Rs 402-415.
After a strong uptrend rally from Rs 750 to Rs 950, the stock is hovering between at Rs 850-940. After the short-term price correction, it has formed a robust trend reversal formation which is broadly positive.
In addition, incremental volume activity, along with long bullish candle, also supported short-term uptrend. For the trend following traders, Rs 880 would be the trend decider level and above the same uptrend texture is likely to continue up to Rs 980-1,000.
On the flip side, below Rs 880 could possibly trigger further weakness up to Rs 840-815.
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