The market had a good rebound on September 29, making the healthy start to the October series, after a disappointing close on the monthly F&O expiry day. The Nifty50 is likely to face strong resistance at the 19,750-19,800 area, which is likely to be crucial for further upside, whereas 19,600-19,500 zone may remain critical support for further fall towards 19,200 levels, experts said.
The Nifty50 jumped 115 points to 19,638 and formed a bullish harami pattern on the daily charts, a bullish reversal pattern, while the BSE Sensex was up 320 points at 65,828.
The broader markets also turned strong with the Nifty Midcap 100 and Smallcap 100 indices gaining 1 percent each on positive breadth.
Stocks that outperformed the broader markets included Sun TV Network, Dr Lal PathLabs, and Sobha. Sun TV Network has seen a strong bullish candlestick pattern on the daily charts with healthy volumes, and jumped 5.6 percent to Rs 612. The stock has taken a support at Rs 578 in previous session after a recent fall, and bounced back on last Friday.
Dr Lal PathLabs has seen a nice breakout of downward sloping resistance trendline and registered a robust bullish candlestick pattern on the daily charts with healthy volumes. The stock rose nearly 5 percent to Rs 2,524 and traded well above all key moving averages.
Sobha climbed 4.5 percent to Rs 705.65 and formed bullish candlestick pattern with small upper shadow on the daily charts. The stock traded above all key moving averages, and the trading volume on last Friday was above average.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
On the weekly and monthly timeframe the stock has witnessed a change of trend forming a series of higher tops and bottoms. The stock is well placed and sustaining above its 20, 50, 100 and 200-day SMA (simple moving average) which reconfirms bullish sentiments.
Rising volumes since June 2023 signifies increased participation. On the monthly chart, the stock has surpassed its "multiple resistance zone" of Rs 590 levels on a closing basis which remains a positive bias.
The monthly "Bollinger band" buy signals indicate increased momentum on a larger time frame. The daily, weekly and monthly RSI (relative strength index) is in positive terrain indicating rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 685-750, with downside support zone of Rs 575-550 levels.
On the daily time frame, the stock has confirmed "multiple resistance" breakout at Rs 2,500 levels on a closing basis. This breakout is accompanied with huge volumes. On the weekly chart, the breakout of "Cup & Handle" signifies trend reversal.
The weekly "triangular" breakout reconfirms trend reversal. The stock is well placed and sustaining above its 20, 50, 100 and 200 day SMA which reconfirms bullish sentiments. The daily, weekly and monthly RSI is in positive terrain indicating rising strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,800-2,880 levels, with downside support zone of Rs 2,400-2,300 levels.
On the weekly chart, the stock has witnessed breakout of an "Inverse Head & Shoulder" around Rs 650 levels. This breakout is accompanied with huge volumes indicating increased participation.
Recently the stock has recaptured its 20-day SMA and rebounded sharply. The stock is well placed and sustaining above its 50, 100 and 200 day SMA which reconfirms bullish sentiments.
The daily, weekly and monthly RSI is in positive terrain indicating rising strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 780-830 levels, with downside support zone of Rs 640-600 levels.
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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