Equity benchmarks had yet another volatile session on May 11 as both frontline indices closed with moderate losses, but the broader markets performed better than the benchmarks. The Nifty Midcap 100 index gained third of a percent and Smallcap 100 index rose half a percent.
The BSE Sensex was down 36 points at 61,905, while the Nifty50 declined 18 points to 18,297 and formed bearish candlestick pattern on the daily scale, but with making higher top, higher bottom.
The Bank Nifty outperformed broader markets, rising more than 140 points to 43,475, while the India VIX rose by 1.01 percent to 13.22 levels, from 13.08 levels, continuing northward journey for fifth consecutive session.
Stocks that performed better than broader indices included Quess Corp, which gained 5.5 percent to Rs 389 and formed bullish candlestick pattern on the daily charts with strong volumes. The stock has seen decisive breakout of bearish Mother candle formed one month ago.
Suprajit Engineering has formed robust bullish candlestick pattern on the daily timeframe, making higher highs-higher lows formation for three days in a row with healthy volumes. The stock settled at Rs 403, the highest closing level since February 4 last year, up over 5 percent.
Transport Corporation of India has also seen strong bullish candle formation on the daily scale with robust volumes after a Doji pattern formation in previous session. The stock rallied 6 percent to Rs 671.6, the highest closing level since December 5 last year.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading on May 12:
After a sharp decline from the higher levels, the counter was in the accumulation zone where it was trading in a rectangle formation.
However, on the daily charts there is a range breakout in the counter along with incremental volume activity, which suggests a new leg of bullish trend in the near term.
Unless it is trading below Rs 370, positional traders can retain an optimistic stance and look for a target of Rs 420.
The stock is trading into a rising channel pattern after reversal from the lower levels and forming the higher lows series continuously on the daily scale. The strong bullish momentum suggest that the counter is likely to maintain bullish continuation chart formation in the coming horizon.
For traders, Rs 385 would act as an important support zone while Rs 435 could be the key resistance area for the short-term traders. However, the uptrend will be vulnerable below the Rs 385 level.
Transport Corporation of India
Post correction from the higher levels, the counter was trading in a rangebound mode. On the weekly charts, the counter has formed higher bottom series and it has given the range breakout.
Therefore, the closing above the resistance line indicates further bullish momentum to continue from the current levels.
For the trend following traders, Rs 645 would act as support level. Above the same, it could move up to Rs 720-760 levels. On the flip side, below Rs 645 traders may prefer to exit from the position as it could slide further till Rs 620 zone.
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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