It was a historic day for the market on September 11, as the Nifty50 reached the much-awaited 20,000-point milestone with support from banks, technology, auto, infrastructure and FMCG stocks, after the G20 Summit. Going ahead, 20,200 can be the initial resistance for the Nifty50 in the immediate term, followed by the 20,500 levels, provided it holds 19,900-19,800 as support in the coming days, experts said, adding that the broader markets may see some consolidation, given the massive rally in the recent past.
The Nifty50 spiked 176 points to end at a record closing high of 19,996, and the BSE Sensex jumped 528 points to 67,127, while the Nifty Midcap 100 and Smallcap 100 indices registered over 1 percent rally each.
The Bank Nifty also sustained its higher highs formation, rising more than 400 points to 45,571, while the Nifty IT climbed 227 points to 32,643.
Stocks that were full of action included Rail Vikas Nigam, Emami, and JSW Energy. Rail Vikas Nigam ended at record closing high of Rs 189.50, up 16.4 percent on Monday, with continuing higher highs, higher lows formation for second consecutive session. The stock has formed robust bullish candlestick pattern on the daily charts, with strong volumes.
Emami has formed long bullish candlestick pattern on the daily scale with healthy volumes after Flag & Pole like pattern breakout, indicating the possibility of more upside in the counter. The stock rallied 5 percent to Rs 567.65, the highest closing level since November 9, 2021.
JSW Energy rose 9 percent to end at record closing high of Rs 431.25 and formed strong bullish candlestick pattern on the daily timeframe with robust volumes. The stock traded above all key moving averages, while it has been rising for fourth consecutive month.
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
In the previous session, RVNL made a new life time high near Rs 191.75 levels. All railway stocks witnessed good rise as cabinet approved seven multi tracking projects for expanding railway networks during recently concluded G-20 summit.
On the daily chart, after a breakout of the Triangle pattern, stock has shown exceptionally well rally of more than 30 percent. Now base line of the Ichimoku Cloud can act as a near term support which is near Rs 160 levels. The current rise is in form of wave iii of 3.
However, almost all the indicators are in overbought territory. So, it is best to wait for a dip to enter into the trend as long as Rs 160 holds on the downside.
As shown on the daily chart, Bollinger bands have started expanding suggesting that good momentum can continue to be seen in coming sessions. Stock is moving in an upward tilted channel. Currently stock is trading near the channel resistance. Any breakout of it can lead to further rise in the stock. Along with this, MACD (moving average convergence divergence) is about to give a bullish crossover but confirmation is still pending.
In short, view for Emami looks positive. A daily close above Rs 570 is must for further bullish momentum to continue and then we can expect a move towards Rs 595. While on the downside, Rs 545 can act as a near term support.
The stock gave a huge return in previous session because of the news report which claims that three private equity investors are in talks to buy minority stake in JSW Energy. Although the rise was because of the news, technically also stock looks bullish.
As we can see the earlier stock formed a rounding bottom pattern and gave a breakout. The follow up buying helped the prices to make a new life time high. Addition to that we can see that recently MACD bullish crossover has happened which is acting as a double confirmation.
One can use dips towards Rs 403 as a buying opportunity to ride the trend with a stop-loss of Rs 370 levels.
Follow Ashish Kyal on Twitter - @kyalashish
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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