Equity benchmarks as well as broader markets continued their upward journey for yet another session on March 22, following a rally in Asian counterparts. Overall it was a volatile session as traders looked a bit cautious ahead of outcome of meeting by US Federal Reserve which overnight announced 25 bps hike. As per CNBC reports, 10 out of 18 Fed officials expect only one more rate hike ahead by the end of this calendar year.
In the previous session, the BSE Sensex closed 140 points higher at 58,215, while the Nifty50 advanced 44 points to settle at 17,152 and formed small bodied bearish candle with upper and lower shadows on the daily charts.
On the broader markets front, the Nifty Midcap 100 and Smallcap 100 indices gained third of a percent and half a percent respectively.
Stocks that performed better than broader markets included Olectra Greentech, which climbed nearly 5 percent to Rs 659 and formed bullish candlestick pattern on the daily timeframe. The stock traded well above all key moving averages (9, 21, 50, 100 and 200-day EMA - exponential moving average).
Anupam Rasayan India shares gained 2.6 percent at Rs 828 apiece, the highest closing level since August 1 last year, and saw bullish candle formation with long upper shadow on the daily charts, indicating some profit booking at higher levels. The trading volume was robust, with stock trading well above key moving averages.
Sudarshan Chemical Industries extended its uptrend with above average volumes for third consecutive session, rising nearly 3 percent to Rs 416. The stock has been making higher highs formation for fifth day in a row.
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:
In previous trading session, the said counter gave clean breakout by taking out its previous range high of Rs 412. Additionally, from indicator point of view, daily RSI (relative strength index) has rebounded from 50-55 levels and placed at 74 levels along with ADX (average directional index) is at 36 levels hinting towards strength in the up move.
Moreover, the price action is comfortably above Alligator (refer chart) which further confirms our bullish view. One can buy in the range of Rs 410-414 with target of Rs 480 and stop-loss would Rs 385 on daily close basis.
Though Anupam Rasayan is looking lucrative at CMP but one needs to wait as of now because it is approaching towards its historical resistance levels of Rs 860 levels. In previous trading session, it got rejected from mentioned Rs 860 levels which is matter of concern in coming few sessions.
On the indicator front, price action is far away from daily Alligator which is hinting towards some pullback in coming sessions. One can book profits in the range of Rs 840-850.
As of now wait and watch. Fresh longs are not advised at CMP.
Since month the said counter has given whopping 99 percent return. Moreover nearly Rs 750 levels (which is also its historical resistance) we have seen Shooting Star kind candlestick structure.
On indicator front, daily RSI has made negative hidden divergence (refer to the chart) which is hinting towards pullback in coming sessions.
One can book profits near mentioned resistance levels. As of now wait and watch. Fresh longs are not advised at CMP.
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