After the recent correction and consolidation, the market turned strong with the Nifty50 closing above 18,700 mark on June 13, tracking positive economic data points including a decline in CPI inflation and strong IIP numbers.
All sectors, barring auto, participated in the market run-up, with FMCG being the biggest gainer among key sectors, rising 1.4 percent.
The BSE Sensex climbed more than 400 points to 63,143, and the Nifty50 jumped 115 points to 18,716, while the broader markets outperformed frontliners on positive breadth, as the Nifty Midcap 100 index gained 1.22 percent and Smallcap 100 index rose seven-tenth of a percent.
Stocks that performed better than broader markets included Tata Communications, Oracle Financial Services Software, and Trent. Tata Communications shares rallied 8 percent to end at a record closing high of Rs 1,598, surpassing the previous all-time high on January 17, 2022. The stock has formed a robust bullish candlestick pattern on the daily charts with significantly higher volumes.
Oracle Financial Services Software jumped 5.6 percent to Rs 3,797.50, the highest closing level since January 19, 2022, and formed a strong bullish candlestick pattern on the daily scale. It has seen a breakout of a long downward sloping resistance trendline adjoining highs of October 19, 2021, and June 5, 2023, while in April, it has given a golden crossover with a 50-day EMA (exponential moving average) crossing 200-day EMA and remained above key moving averages.
Trent has seen a record closing high of Rs 1,686, up 5.66 percent and formed a robust bullish candlestick pattern on the daily scale with healthy volumes. It has given a breakout of more than a week of consolidation and remained above all key moving averages.
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
The stock has exhibited significant upward momentum over the past three weeks, surging from Rs 1,300-level to nearly Rs 1,600-level. Following such a robust advance, it is prudent to anticipate a period of consolidation or retracement.
Long-term investors are recommended to maintain their positions, recognizing the potential for further gains. Traders, on the other hand, should consider adjusting their stop-loss orders to Rs 1,545, corresponding to the breakout level, in order to mitigate potential downside risks in case the stock experiences price turbulence below this level.
Oracle Financial Services Software
On the weekly chart, a notable base formation is evident in this stock. Additionally, an Inverse Head and Shoulder pattern, a bullish reversal pattern, has emerged. These technical indications suggest the potential for upward movement, with a target range of Rs 4,200-4,250.
However, it is crucial for the stock to maintain support above Rs 3,590-3,600 level to sustain the bullish bias and increase the likelihood of achieving the projected higher levels.
The stock is currently trading at all-time highs, indicating robust momentum and active participation. In the near term, there has been a significant rally from Rs 1,400 to around Rs 1,685.
Such substantial moves often lead to a period of consolidation or correction. It is anticipated that the stock may advance further towards Rs 1,750-1,770 range before experiencing a pullback.
Traders are advised to trail their stop-loss to Rs 1,600, while investors can maintain their positions in the stock.
Disclaimer: The views and tips expressed by investment experts on Moneycontrol.com are their own, 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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