It was a healthy day for the market as the benchmark indices clocked nearly 1 percent gains and recovered all their previous day's gains with the Nifty50 clawing back above previous week's high and went closer to 19,700. If the index sustains above this zone in the coming sessions, then 19,800-20,000 levels can't be ruled out, with immediate support at 19,600-19,500 levels, experts said.
The Nifty50 surged 178 points to 19,690, forming a long, bullish candlestick pattern on the daily charts, and the BSE Sensex jumped 567 points to 66,079, while the Nifty Midcap 100 and Smallcap 100 indices gained more than 1 percent each on positive breadth.
All sectors participated in the run with the Bank Nifty climbing 474 points to 44,360, while the Nifty IT index rose 261 points to 32,569 and stayed above 20-day EMA (exponential moving average placed at 32,260).
Stocks that outperformed broader markets included City Union Bank, Godrej Properties, and Escorts Kubota. City Union Bank has seen a decisive breakout of downward sloping resistance trendline adjoining highs of September 11 and October 6, and formed robust bullish candlestick pattern on the daily scale with multi-fold jump in volumes. The stock rallied more than 7 percent to Rs 135 on the NSE. The 200-day EMA (Rs 137) is expected to play crucial role for further upside.
Godrej Properties also saw breakout of falling resistance trendline adjoining highs of July 28 and October 6, and jumped 5.65 percent to Rs 1,723, forming long bullish candlestick pattern on the daily scale with strong volumes. The stock also traded well above all key moving averages (20, 50, 100 and 200-day EMA), which is a positive sign.
Escorts Kubota has formed long bullish candlestick pattern on the daily timeframe with robust volumes and soared 6 percent to end at record closing high of Rs 3,393.5, with trading above all key moving averages. The stock has seen a breakout of horizontal resistance trendline adjoining highs of August 30 and September 27.
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
Despite enduring a prolonged phase of time and price correction since 2020, this stock has recently shown signs of a potential turnaround. On the daily chart, it formed a Descending Triangle pattern, typically considered bearish.
However, a recent development has been a Bullish breakout from this pattern, accompanied by robust trading volumes. This breakout suggests that the stock might be on the path to recovery and could target levels in the range of Rs 145-150. Key support for the stock is situated around Rs 127 levels.
The stock, which was a robust performer until the end of 2021, faced a substantial correction thereafter. However, a notable change in its price structure is underway as it begins to establish higher highs and higher lows.
In the weekly chart, an interesting development is the formation of a potential Cup and Handle pattern, with the breakout level marked at Rs 1,770. Should this breakout occur on substantial trading volume, it could signify a strong bullish sentiment for the stock.
This particular stock has been a standout performer in the Auto sector. It embarked on a robust and dynamic upward trajectory from April 2023 to October 2023. During this impressive run, the stock surged from Rs 1,800 to around Rs 3,200, after which it entered a brief consolidation phase.
Recently, the stock broke out of this consolidation range with substantial trading volumes. Its current strong momentum is a positive sign. As long as the stock maintains its position above Rs 3,100, the outlook remains favourable, with potential for a move towards Rs 3,700-3,800 range.
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