The market retained its northward journey for the second consecutive session and the Friday's session especially was very strong, taking the benchmark indices to the highest level of last three weeks, on March 31. Not only this, the single-day gains reported on Friday was the highest since last November and there was a decisive breakout of two-week consolidation range.
The positive mood in global counterparts amid hopes for slowing rate hike cycle sooner than later and rally across sectors supported the market. The BSE Sensex climbed 1,031 points or 1.78 percent to 58,992, while the Nifty50 jumped 1.63 percent or 279 points to 17,360 and formed long bullish candlestick on the daily timeframe with making higher top higher bottom formation for second day in a row.
The broader markets also joined bull-run on strong breadth. The Nifty Midcap 100 index gained 0.9 percent and Smallcap 100 index rose 1.6 percent.
Stocks that were in focus included ICICI Bank which climbed 3 percent to Rs 877 and formed long bullish candlestick pattern on the daily scale with above average volumes. The stock jumped over 50 and 100-day EMA (exponential moving average) after consolidating above 200-day EMA in previous six consecutive sessions.
Trent clocked around 3 percent gains for yet another session, closing at Rs 1,375 with above average volumes. The stock has formed strong bullish candle on the daily charts, after forming Bullish Engulfing kind of pattern in previous session. Overall, it has decisively broken the consolidation range of last one-and-half-month.
Alkem Laboratories shares also rose 3 percent to Rs 3,396, the highest closing level since April 21 last year and formed long bullish candle on the daily scale with healthy volumes, continuing uptrend for fifth consecutive session. The stock traded above all key moving averages (21, 50, 100 and 200-day EMA).
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
The stock has witnessed a corrective leg from November 20222 and in the month of February 2023, the stock gapped up and has been consolidating in a tight range. The bullish gap remains unfilled which denotes strong buyer demand at Rs 1,280-1,270 zone which is strong support area.
The stock has broken out the consolidation band with large green bar and above average volumes. It is likely to head towards Rs 1,480-1,520 region if it manages to sustain the momentum and trades above Rs 1,320-level.
The stock has endured a corrective leg from November 2022 and although it broke out of the falling trendline, the stock has not witnessed any follow-through beyond Rs 880-875 zone. The stock is consolidating in a narrow range of Rs 815-875 and a sustained breakout above Rs 880 is likely to inspire a move towards Rs 940-920 zone.
The recent volume activity too shows stronger buyer interest near the breakout making a high probability bullish setup provided it sustains above Rs 840-850 zone.
The stock has been in a downtrend since October 2021 and despite the falling trendline breakout, the stock has not witnessed any follow-through beyond Rs 3,280-3,300 zone.
Recent price action has shown a breakout from the 9-month consolidation zone supported by above average volumes. The stock is likely to test Rs 3,600-3,700 zone provided it hold above Rs 3,200-mark.
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