It was a strong day for the market on March 3, as the benchmark indices clocked the highest single day gains in nearly four months, backed by a rally in metals, banking and financial services, FMCG and oil and gas stocks.
The BSE Sensex surged 900 points or 1.53 percent to 59,809, while the Nifty50 jumped 272 points or 1.57 percent, the biggest single-day gains since November 11 last year, to 17,594, and formed a long bullish candle on the daily charts with above average volumes and made higher high higher low formation.
The broader markets also participated in the run, but underperformed frontliners. The Nifty Midcap 100 index was up 0.7 percent and Smallcap 100 index gained 0.8 percent as about two shares advanced for every declining share on the NSE.
Stocks that performed much better than broader markets included State Bank of India which climbed over 5 percent to Rs 561 and formed long bullish candlestick pattern on the daily charts with healthy volumes. The stock has been making higher highs higher lows formation for third straight session, with getting back above 200-day EMA (exponential moving average - Rs 546) as well as 200-day SMA (simple moving average - Rs 542).
PB Fintech was also in focus, rising 6.5 percent to Rs 598, the highest closing level since June 27 last year, after consolidation in previous four trading sessions with sustaining above 200-day EMA (Rs 546). The stock has formed long bullish candle on the daily scale with above average volumes.
Varun Beverages shares gained 1.2 percent at Rs 1,358, the highest closing level since December 22 last year, and formed decent bullish candle on the daily charts with making higher highs higher lows for third consecutive session. The stock has broken horizontal resistance trendline adjoining multiple touchpoints from December 2 last year till March 2 this year, which is a positive sign.
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 been in a strong uptrend since the last many months, but it was consolidating since December 2022. Currently, the stock has formed a Flag and Pole pattern which it has broken out of.
The continuation of this move, along with volume participation can drive the stock higher above its previous life-highs. One can buy the stock with a target of Rs 1,450-1,500, and stop-loss of Rs 1,310.
The stock has performed poorly since it listed but earlier this week it crossed it 200-day EMA (exponential moving average - Rs 546) with volume participation. The stock has formed an Inverted Head and Shoulder which is a bottom reversal pattern and it currently trading above its neckline (orange line).
On last Friday, the stock has also broken above the key polarity resistance seen at Rs 580-level causing a price-volume breakout. One can buy the stock with a stop-loss of Rs 574 and for a target of Rs 650-665.
The stock has performed poorly since the fears of Adani saga played out late in January 2022. Looking at the current structure, the stock seems to have formed a variation of the Double Bottom (bullish reversal pattern) called the Adam and Eve pattern.
The stock has broken above the neckline (Rs 554 mark) aided by strong volumes today. The price objective as per this pattern is expected at Rs 600-620 zone. One can buy the stock with a stop-loss of Rs 540 and for a target of Rs 610.
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