The market recorded healthy gains after a consolidation breakout, and continued its upward journey for the fourth consecutive session on June 7, ahead of the outcome of three-day Monetary Policy Committee meeting scheduled on June 8.
The BSE Sensex climbed 350 points to 63,143, and the Nifty50 jumped 127 points to 18,726, while the Nifty Midcap 100 and Smallcap 100 indices outperformed benchmark indices, rising more than 1 percent each on positive breadth.
All sectors contributed to the rally, with FMCG, Metal and Oil & Gas indices gaining 1-1.5 percent, while Bank Nifty rose 111 points to 44,275 amid volatility.
Stocks that were in action included Glenmark Pharma which jumped 5 percent to Rs 663, the highest closing level since July 22, 2021, and formed strong bullish candlestick pattern on the daily charts with healthy volumes. The stock has been making higher highs, higher lows formation for seventh consecutive session.
Hindustan Petroleum Corporation (HPCL) has given a healthy month-long consolidation breakout on the higher side with significantly higher volumes. The stock rose 5.5 percent to Rs 277, the highest closing level since April 28, 2022. A month ago, the stock had given a golden crossover with 50 DEMA crossing 200 DEMA on the higher side.
Triveni Engineering climbed 5.6 percent to Rs 293, December 22 last year, and formed robust bullish candlestick pattern on the daily scale, with above average volumes. The stock has seen a decisive breakout after a consolidation since the start of this calendar year.
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 Glenmark might be looking lucrative due to recent up moves in the counter, one needs to see that it is currently approaching its historical resistance of Rs 700. Having said that, it has already given 75 percent return in last 5 months.
Last but not the least, it way above 200 DEMA (daily exponential moving average) so mean reversion could be possible if it gets rejected from its above-mentioned resistance zone. One can book profit in the zone of Rs 680-700 levels. As of now no fresh longs are recommended.
Triveni Engineering and Industries
Entire last week of May 2023, it consolidated in the zone of Rs 270-280. In previous trading session, it gave massive breakout along with huge volume which is hinting bullish momentum in coming few sessions.
The best part of above-mentioned consolidation zone of Rs 270-280 is that those where the levels of monthly central pivot range (refer to the chart).
So, one can buy in small tranche in the zone of Rs 290-295 and another Rs 280-285 if tested with upside target of Rs 330 and stop-loss would be Rs 270 on daily close basis.
Hindustan Petroleum Corporation
Entire month of May 2023, it consolidated in the zone of Rs 250-270. In previous trading session, it gave massive breakout along with huge volume which is hinting bullish momentum in coming few sessions.
The best part of above-mentioned consolidation zone of Rs 250-270 is that those where the levels of weekly central pivot range (refer to the chart).
So, one can buy in small tranche in the zone of Rs 274-278 and another Rs 268-272 if tested with upside target of Rs 310 and stop-loss would be Rs 260 on daily close 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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