The market got into a momentum with the Nifty50 surpassing the 19,500 mark again but could not keep up the rally in later part of the session due to some profit-taking. The index sustained 19,400 levels throughout session, which is expected to be crucial for direction on either side in the market, and has been hovering in the range of 19,300-19,500 levels for sixth consecutive session on July 11.
The BSE Sensex jumped 274 points to 65,618, and the Nifty50 surged over 83 points to 19,439, while the broader markets outperformed frontliners as the Nifty Midcap 100 index gained 0.9 percent and Smallcap 100 index climbed 1.3 percent.
Bank Nifty remained below the 45,000 mark, down 116 points to 44,745, while the Nifty IT climbed over 130 points to 29,325. India VIX, which measures the expected volatility for next thirty days in the Nifty50, dropped 3.92 percent from 11.46 levels, to 11.01 levels.
Stocks that were performed better than broader markets included Cochin Shipyard, Castrol India, and Krishna Institute of Medical Science. Cochin Shipyard surged 11 percent to Rs 647 and formed robust bullish candlestick pattern on the daily charts with strong volumes. The stock has seen a decisive breakout of long downward sloping resistance trendline adjoining highs of December 5 last year and June 21 this year, which is a positive sign.
Castrol India also jumped 5.6 percent to Rs 133 and has seen formation of long bullish candlestick pattern on the daily scale with significantly higher volumes. The stock has seen a golden crossover with the 50-day EMA (exponential moving average) crossing 200-day EMA, which indicates possibility of further uptrend.
Krishna Institute of Medical Science ended at record closing high of Rs 1,840, up over 3 percent with above average volumes. The stock has formed bullish candlestick pattern on the daily timeframe, with making higher high, higher low formation.
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
The stock that has been in a persistent downtrend since 2015, is showing signs of a potential turnaround. In the post-2020 period, the stock has been forming a base formation, indicating a possible shift in momentum. Recent price action has been accompanied by strong volumes, supporting the upward movement in the stock.
It is now approaching a significant resistance level at Rs 138-139, which has served as a hurdle in the past. Overcoming this resistance will be a positive signal for the stock.
From a strength perspective, sustaining above the swing high resistance at Rs 138-139 can lead to further positive momentum, potentially pushing the stock towards Rs 148-150 zone in the short term.
While the stock's long-term downtrend remains intact, the recent price action and increased volumes suggest a potential opportunity for short-term traders. However, it is important to closely monitor the stock's performance and watch for any signs of weakness or failure to sustain above the resistance level.
The stock in the defence sector, has been benefiting from positive market conditions since 2021. After a period of time and price correction, the stock has begun to form a pattern of higher highs and higher lows, indicating a potential uptrend.
Notably, the stock has surpassed its previous swing high of Rs 605-607 and has recently experienced a breakout from a Cup & Handle pattern. This breakout suggests further upward movement in the stock's price. It is important to note that the stock has critical support at Rs 580, which should be closely monitored. Based on current momentum, the stock is expected to test its life highs in the range of Rs 680-700 levels.
Given the positive market conditions and the breakout from the Cup & Handle pattern, the outlook for Cochin Shipyard appears favourable. However, investors should remain vigilant and watch for any changes in the stock's performance, particularly in relation to the critical support level.
Krishna Institute of Medical Science
KIMS, a stock in the healthcare sector, has been experiencing increased interest in recent weeks. Since March 2023, the stock has been in an uptrend, characterized by a series of higher highs and higher lows. Today, the stock broke out of a Flag and Pole pattern, indicating a potentially bullish move.
It is worth noting that the stock has critical support at Rs 1,770, which should be closely monitored. Based on the current momentum, the stock is expected to test Rs 2,150-2,200 range in the coming weeks.
Given the stock's uptrend and the breakout from the Flag and Pole pattern, the outlook appears positive. However, investors should keep a close eye on the critical support level and be aware of any potential changes in the stock's performance.
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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