The market remained under selling pressure throughout the session on February 6 after a day of sharp rally, dented by weak global cues and cautious mood at traders' desk, especially ahead of the outcome of the three-day Monetary Policy Committee meeting scheduled for tomorrow.
The BSE Sensex was down more than 300 points to 60,507, and the Nifty50 fell nearly 90 points to 17,765, but the broader markets were backed by bulls with positive breadth. The Nifty Midcap 100 and Smallcap 100 indices have gained nearly 1 percent and half a percent respectively.
We have selected three stocks for trade spotlight, which have performed much better than broader markets included Procter & Gamble Health which was the second largest gainer in the Nifty500, while M&M Financial Services and Zydus Lifesciences were amongst the top five gainers in the futures & options segment.
Procter & Gamble Health shares had a robust gap up opening on Monday, rising nearly 15 percent to Rs 4,703, the highest closing level since February 16, 2022. In fact, the gap up opening has helped the stock climb over all long term moving averages (50, 100 and 200 EMA). The stock has formed strong bullish candlestick pattern on the daily charts with healthy volumes.
M&M Financial Services gained 7.5 percent to close at Rs 262, the highest closing level since June 4, 2019 and formed long bullish candle with long upper shadow on the daily charts, indicating some profit taking at higher levels, making higher high higher low formation for second consecutive session.
Zydus Lifesciences climbed over 8 percent to Rs 470, the highest closing level since January 3, 2022 and formed strong bullish candlestick pattern on the daily charts with robust volumes. It has also seen healthy gap up opening and stayed above short term as well as long term moving averages.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
M&M Financial is currently trading at 52-week high, which tells that the stock already is in strong momentum.
The stock in the latest trading session has given a breakout from the Rectangle pattern, indicating beginning of the trend to the upside.
The breakout is confirmed as it is accompanied by a Gap and higher volumes.
The Bollinger Bands on the Daily timeframe has opened which points towards the rising volatility for an up move.
RSI (relative strength index) on the daily timeframe has shown a breakout, reflecting strong momentum in the prices.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 300 with a stop-loss of Rs 245 on the closing basis.
Around the level of Rs 390, Zydus Life has shown a change in the polarity by its prices which shows the positive undertone of the prices.
The stock in the latest trading session has given a breakout from the Cup & Handle pattern, indicating beginning of the trend to the upside.
The extraordinary volume confirms the breakout.
Prices have surpassed upper Bollinger Band which points towards the rising volatility of the prices.
RSI on daily as well as on the weekly timeframe is above 60 mark reflecting strong momentum in the prices.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 530 with a stop-loss of Rs 445 on the closing basis.
PGHL, post the strong correction from February 2021 to April 2022 the Stock happened to be in a consolidated range between Rs 3,900-4,530, which created a fresh base formation on the lower levels.
Prices on latest trading session gave a breakout from Rectangle pattern which Points towards the reversal of the trend to the upside.
The breakout was confirmed by the high volumes.
The stock has surpassed the key moving averages of 100 & 200-day EMA which confirms the reversal to the upside.
RSI plotted on the Daily timeframe is quoting at the highest level since December 2020.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 5,100. With a strict stop-loss of Rs 4,500 on the closing basis.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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