The market has seen a healthy breakout of last eight-day consolidation and closed at the highest level of current calendar year on May 26. The upward journey is attributed to the rally across sectors, with FMCG, IT, Metal and Pharma being the biggest gainers.
The BSE Sensex jumped more than 600 points to 62,502, and the Nifty50 spiked 178 points to 18,499, the highest closing level since December 14, 2022 and has seen a breakout of downward sloping resistance trendline adjoining highs of December 1 (record high), and May 15, 2023.
The Nifty Midcap 100 and Smallcap 100 indices also gained momentum, rising 0.8 percent and 0.5 percent respectively on positive breadth, while India VIX, the fear index, dropped by 4.95 percent to 11.90 levels, from 12.52 levels, giving more comfort for bulls.
Stocks that performed better than broader markets included eClerx Services which surged 9 percent to Rs 1,538, the highest closing level since September 14 last year and recouped all its previous day's losses. The stock has formed robust bullish candlestick pattern on the daily charts with strong volumes.
Indus Towers extended northward journey for yet another session, rising 6 percent to Rs 157, the highest closing level since March 9, and formed long bullish candlestick pattern on the daily timeframe, with above average volumes. The stock has seen a breakout of long downward sloping resistance trendline adjoining highs of December 16 last year, and May 17 this year.
HDFC AMC has formed healthy bullish candlestick pattern on the daily charts with above average volumes, after Tweezer Bottom candlestick pattern formation in previous session, which is generally a short-term bullish reversal pattern. The stock climbed 5 percent to Rs 1,856 on the NSE.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Since the past one year, the stock has strongly consolidated within "descending triangular" formation . With last week's strong up move, the stock has decisively broken out this formation at Rs 1,490 levels along with huge volumes.
On the daily chart, the stock has recaptured the 200-day SMA (simple moving average) and rebounded sharply indicating strong comeback of bulls. The daily weekly and monthly RSI (relative strength index) is in bullish mode which signals rising strength.
The weekly and monthly "Band Bollinger" buy signals indicate increased momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,700-1,850 with downside support zone of Rs 1,400-1,350 levels.
The stock is in downtrend across all the time frame forming a series of lower tops and bottoms, however since the past five months, the strength indicator RSI has formed a positive divergence indicating rising strength at lower levels.
Huge volumes at lower levels indicate increased participation at lower levels. On the daily time frame, the bullish crossover of the 20 and 50-day SMA (simple moving average) supports the bullish trend.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 175-185, with downside support zone of Rs 147-140 levels.
On the daily chart, the stock has witnessed an Inverse Head and Shoulder - a trend reversal pattern. With current close, the stock has marginally closed above the neckline level of Rs 1,850 levels.
Huge volumes confirmed increased participation. The stock is well placed above its 20 and 50-day SMA which reconfirms short term bullish trend. The daily weekly and monthly RSI is in bullish mode which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,000-2,080 levels, with downside support zone of Rs 1,730-1,700 levels.
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