The market had a strong end for the last week on July 17 as the Nifty50 closed above 19,500 mark and the BSE Sensex above psychological 66,000 mark for the first time in the history. This was attributed largely to technology stocks and the consistent FIIs buying interest in Indian equities.
The BSE Sensex climbed over 500 points to 66,061 and the Nifty50 jumped over 150 points to 19,565, while the broader markets performed better than benchmarks as the breadth was in favour of bulls with 2:1 ratio. The Nifty Midcap 100 and Smallcap 100 indices rallied 1.15 percent and 1.4 percent respectively.
The Bank Nifty gained more than 150 points to close at 44,819, while the Nifty IT had a stellar run after a long time, surging 1,317 points or 4.5 percent to 30,945 and formed strong bullish candlestick pattern on the daily charts.
Stocks that were in action included Mastek, Mphasis, and Medplus Health Services. Mastek jumped over 9 percent to Rs 2,152, the highest closing levels since August 1 last year and formed robust bullish candlestick pattern on the daily timeframe after decisively broken the downward sloping resistance trendline adjoining highs of June 5 and July 6. The trading volume was also better.
Mphasis shares gained nearly 8 percent to settle at Rs 2,070 and formed strong bullish candlestick pattern on the daily timeframe with significantly higher volumes. The rally was seen after more than a month of consolidation, and the stock came back above 200-day EMA (exponential moving average Rs 2,012).
Medplus Health Services has formed Bullish Engulfing kind of candlestick pattern on the daily charts with above average volumes. The stock has seen a decisive breakout of horizontal resistance trendline adjoining highs of May 29 and July 12, which is a positive sign. It settled at Rs 870, up 4.6 percent.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
On the weekly chart, the stock has confirmed "multiple resistance" breakout on a closing basis. This breakout is accompanied with huge volumes which signals increased participation.
The stock has recaptured its 20, 50-day SMA (simple moving average) and rebounded very sharply which reconfirmed support from averages around Rs 1,960-1,930 levels. Additionally, both the daily and weekly "Bollinger Bands" have generated a buy signal, indicating rising momentum in the stock. This further supports the bullish outlook.
The daily, weekly, and monthly strength indicator RSI (relative strength index) is in bullish terrain. This confirms the rising strength in the stock and supports the overall bullish sentiment.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,400-2,600 with downside support zone of Rs 2,030-1,960 levels.
On the daily and weekly time frame, the stock has confirmed trend reversal forming higher tops and bottom formation indicating bullish sentiments. The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish sentiments.
The daily "Bollinger Band" buy signals shows increased momentum. Huge volumes on this rally signals increased participation. The daily, weekly, and monthly strength indicator RSI is in bullish terrain.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,250-2,330 with downside support zone of Rs 1,960-1,930 levels.
With the past couple of week's straight up move, the stock has sharply rebounded from its prior support zone of Rs 774 levels. This resumption of upmove is also backed by consistent volumes which signals increased participation.
The stock is well placed above its 20, 50, 100 and 200-day moving averages and prices are also inching up along with rising prices which reconfirms bullish trend. The daily, weekly, and monthly strength indicator RSI is in bullish terrain representing sustained strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 940-960 with downside support zone of Rs 830-810 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
