Moneycontrol has selected three stocks, namely Bajaj Finance, PCBL, and MCX India, which have outperformed the benchmark indices as well as broader markets. In fact, these stocks were amongst the biggest gainers in the Nifty500 index on October 6.
The BSE Sensex jumped 364 points to 65,996, and the Nifty50 rose 108 points to 19,654, extending upward journey for the second consecutive session. On the broader markets front, the Nifty Midcap 100 and Smallcap 100 indices gained 0.6 percent and 0.8 percent respectively, on positive breadth.
Among the three stocks, PCBL was the biggest gainer, rising 7.55 percent to Rs 197 and formed strong bullish candlestick pattern on the daily charts with multi-fold jump in volumes. Further, the stock traded well above key moving averages (20, 50, 100 and 200-day exponential moving averages - EMA), with making higher tops, higher bottoms formation for third straight session, while on the weekly scale, there was robust bullish candlestick pattern formation with strong volumes as it surged 17 percent.
MCX India has formed long bullish candlestick pattern on the daily scale with above average volumes, after Doji kind of formation in previous session. The stock gained 4.6 percent at Rs 2,040 and traded way above key moving averages. Since after breaking long downward sloping resistance trendline on September 25, Rs 1,900 has acted as a strong support for the stock.
Bajaj Finance was the third gainer amongst them, climbing 4 percent to Rs 8,168.55, and formed strong bullish candlestick pattern on the daily timeframe with healthy volumes. The stock has also seen a breakout of slightly upward sloping resistance trendline adjoining highs of July 5 and and October 4, and remained way above key moving averages. Since after falling closer to 200-day EMA in August, the stock has been in an uptrend, barring intermittent correction and consolidation.
Here's what Foram Chheda of ChartAnalytics recommends investors should do with these stocks when the market resumes trading on Monday:
In March, Bajaj Finance exhibited a minor double bottom pattern around Rs 5,550-5,600 levels, prompting a rebound. The stock surpassed both 50-day and 200-day moving averages (MA), signaling a bullish trend. After a brief pause at Rs 7,900 levels in July, it experienced a correction, finding support near the 100-day moving average before resuming the upward trajectory.
Following several attempts, the stock broke through the defined resistance level, closing at a 52-week high with increased volume, confirming bullish momentum.
Investors are advised to maintain their positions, anticipating a potential target near Rs 8,650 levels. However, caution should be exercised if the price dips below Rs 7,850, signaling a prudent exit strategy.
Until July, PCBL's stock price followed an uptrend, reaching a peak at Rs 178 levels before declining. Finding support near the 50-day MA, it consolidated within a narrow range for about a month. After retesting the previous peak and failing to break out, a retracement occurred, leading to a broad consolidation.
Recently, the stock broke out from this consolidation, accompanied by a significant increase in volume, affirming bullish sentiment. The PSAR (parabolic stop and reverse) indicator remains in a buy mode.
Investors are advised to maintain their holdings, anticipating a higher target around Rs 220-225 levels. However, caution is advised if the price falls below Rs 180 levels, suggesting a prudent profit-booking strategy.
In May, MCX' stock price surged above key moving averages (50-day, 100-day, and 200-day MA) around Rs 1,430-1,450 levels, establishing a robust uptrend. The stock consistently formed higher highs and higher lows, confirming its upward trajectory. Recently, there was a significant uptick from Rs 1,702 to Rs 2,139, followed by a 50 percent retracement based on Fibonacci levels.
Currently, the stock is displaying signs of resuming the upward movement, accompanied by increased trading volume, bolstering the bullish trend. The PSAR indicator also indicates a buy signal. Investors might consider purchasing the stock around Rs 1,980 levels, targeting a higher range near Rs 2,200, while maintaining a stop-loss below Rs 1,910 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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