The market rebounded sharply after being oversold in previous eight-day correction, making the good start to the month of March. Volatility also dropped, giving comfort for bulls as India VIX fell by 7.31 percent to 13 levels.
The BSE Sensex gained nearly 450 points after losing over 2,300 points in previous eight trading sessions, while the Nifty50 rose 147 points to 17,451 and formed bullish candlestick pattern on the daily charts, with making higher high higher low formation. The benchmark indices recouped their previous two-day losses.
The broader markets were also in action, with the Nifty Midcap 100 index rising 1.55 percent and Smallcap 100 index climbing 1.3 percent on positive breadth. About three shares advanced for every declining share on the NSE.
Stocks that were in action included Poly Medicure which jumped 7 percent to Rs 1,003, the highest closing level since November 9. The stock has formed a large bullish candle on the daily charts, with strong volumes and stayed above all key moving averages, which is a positive sign. It has broken the long downward sloping resistance trendline adjoining highs of November 9 and February 27.
National Aluminium Company shares rose 5.6 percent to Rs 82.65, the highest closing level since January 31 and formed a robust bullish candlestick pattern on the daily charts with above average volumes. The stock made higher highs higher lows formation for second consecutive session, with getting back above all key moving averages.
Triveni Turbine was also in action, advancing nearly 9 percent to end at a record closing high of Rs 345 and formed long bullish candlestick pattern with long upper shadow on the daily charts, indicating some profit taking at higher levels. The stock made higher highs higher lower formation for third consecutive session, with trading above all key moving averages and with robust volumes.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Though the said counter looks lucrative after its previous up-move, one needs to pay attention that it is approaching its historical resistance of Rs 1,020-1,030.
On the indicator front, daily MACD (moving average convergence divergence) is overstretched along with an impulsive structure near 70 levels which is a matter of concern.
One can book profit near Rs 1,020-1,030 levels immediately. As of now, no fresh longs are recommended.
Since last month the said counter has given a whopping return of approximately 48 percent. At the current juncture, it has made a Bearish Deep Crab pattern with Rs 350-355 as a potential reversal zone.
Additionally, on a daily scale, RSI (relative strength index) is at the extreme zone of 77 levels which is a matter of concern. One can book profit near Rs 350 zone. As of now, no fresh longs are advised.
National Aluminium Company (NALCO)
Since the last couple of months, the said counter has been trading in the range of Rs 76-85. In previous trading sessions, we saw massive buying interest but still, the above-mentioned range is not taken out.
Though the counter is above all major exponential moving averages which are hinting at a bullish stance. Moreover, to be on the safer side one needs to wait for above Rs 85 daily close.
One can only buy once it gets daily closing above Rs 85 for a target of Rs 95 and stop-loss would be Rs 80.
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