The market remained under pressure, but three stocks - Aarti Industries, Cummins India, and Bharat Dynamics - outperformed the benchmarks \as well as the broader indices, and recorded healthy gains.
Bharat Dynamics was the top gainer among these three stocks on April 16, reporting a 4.7 percent rally to Rs 1,847 on the NSE, with robust volumes. The stock has given breakout of a horizontal resistance trendline adjoining multiple touch points, as well as there was a breakout of more than couple of weeks of consolidation, while it was trading above all key moving averages.
Aarti Industries gained 2 percent to Rs 749 and formed a long bullish candlestick pattern on the daily charts with average volumes. Overall, the stock has been in an uptrend since mid-March, despite intermittent small corrections. The stock traded well above all key moving averages.
Cummins India jumped 2.6 percent to end at a new closing high of Rs 3,121 and traded above all key moving averages. The stock has seen a long bullish candlestick pattern formation on the daily charts with average volumes, while overall, it has been in a northward journey since November 2023, despite intermittent consolidation and correction.
Here's what Riyank Arora of Mehta Equities recommends investors should do with these stocks when the market resumes trading today:
The stock has experienced a significant breakout above its 52-week high of 712 on its daily charts. With the RSI (relative strength index - 14) on the daily timeframe hovering near 70.19, the overall momentum appears strong. Any pullback towards Rs 712-715 zone should present a favourable buying opportunity for the stock.
A strict stop-loss should be set at Rs 690 mark for potential upside target of Rs 800 and above. Given that the volumes on the stock are four times its average (30-day) traded volume, the stock appears poised for a strong uptrend rally.
The stock has successfully broken out above its all-time high mark of Rs 3,099 on its daily charts and managed to close above it. With the traded volumes nearly equivalent to its average (30-day) traded volume, it is expected that the stock will continue to rise towards Rs 3,250 and beyond.
The RSI (14) on its daily charts, nearing 71.63, indicates strong momentum, with major support positioned at Rs 3,000 mark, which should serve as a stop-loss for the trade.
The stock has broken out above its anchor VWAP (volume-weighted average price) resistance mark of Rs 1,813.50 and closed above it. The RSI (14) on the daily charts, at 62.96, indicates signs of momentum and strength.
It is anticipated that the stock will likely move higher towards Rs 1,984 and beyond. A major support level is situated at Rs 1,750, which should function as a stop-loss for the counter.
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