The market had a healthy start for the July series as the benchmark indices hit fresh intraday all-time high as well as ended at new closing high on June 30, backed by major buying interest in technology, banking and financial services, and auto stocks.
The BSE Sensex climbed over 800 points to 64,719, and the Nifty50 soared more than 200 points to 19,189, forming bullish candlestick pattern on the daily timeframe, while the Nifty Midcap 100 and Smallcap 100 indices gained 0.66 percent and 0.4 percent respectively.
The Bank Nifty decisively closed above 44,500 mark, rising nearly 1 percent to 44,747, while the Nifty IT was the star performer, rising 2.5 percent to close above 200-day EMA (exponential moving average) at 29,563, the highest closing level since March 9.
Stocks that were in action included HDFC AMC, Indiabulls Housing Finance, and Biocon. HDFC Asset Management Company has seen a robust gap up opening on Friday and clocked 12 percent gains at Rs 2,295.65, the highest closing level since April 6 last year, with significantly higher volumes. The stock has formed strong bullish candlestick pattern on the daily charts and has seen a decisive breakout of long downward sloping resistance trendline adjoining highs of April 4 and December 20 last year.
Indiabulls Housing Finance has given a nice consolidation breakout and jumped over 6 percent to Rs 123.4, the highest closing level since January 25 this year, with healthy volumes. The stock has formed long bullish candlestick pattern on the daily scale and closed above 200-day EMA.
Biocon has also given a breakout after a month of consolidation and settled decisively above 200-day EMA, with strong volumes. It has also seen a downward sloping resistance trendline breakout adjoining highs of November 21 last year and May 24, 2023. The stock rallied more than 8 percent to Rs 265.50, and formed robust bullish candlestick pattern on the daily charts.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
On the weekly time frame, the prices are forming a "double bottom", a trend reversal pattern with expected breakout zone of Rs 2,320 on a closing basis. However, with current close, the stock is poised for this price pattern breakout at Rs 2,320 levels hence any upcoming weekly close above Rs 2,320 levels may lead upside momentum towards Rs 2,600-2,800 levels.
In the near past, the stock has recaptured its 20 and 200-day SMA (simple moving average) and rebounded sharply indicating strong comeback of bulls. Huge rising volumes signals increased participation.
The daily weekly and monthly strength indicator RSI (relative strength index) is in bullish terrain which reconfirms rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,550-2,630, with downside support zone of Rs 2,150-2,000 levels.
On the daily time frame, the stock has witnessed "multiple resistance" breakout at Rs 120 levels on a closing basis. This breakout is accompanied with huge volumes which signified increased participation.
The stock has recaptured its 20, 50 and 100-day SMA and rebounded sharply indicating strong comeback of bulls.
The daily "Band Bollinger" buy signal indicates increased momentum. The daily, weekly and monthly strength indicator RSI is in bullish terrain which reconfirms rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 140-155, with downside support zone of Rs 115-113 levels.
On the daily chart, the stock has observed "multiple resistance" breakout at Rs 253 levels indicating trend reversal. The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish sentiments.
Huge volumes on this breakout indicates increased participation. The daily, weekly and monthly strength indicator RSI is in positive terrain indicating rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 285-300, with downside support zone of Rs 245 levels.
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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