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Last Updated : Apr 30, 2018 08:54 AM IST | Source: Moneycontrol.com

Momentum plays? Nearly 200 BSE stocks hit fresh record highs in April

Experts feel quality names are helping the index break past key resistance levels, which is a positive sign for the bulls and also assures that the momentum is likely to continue.

Kshitij Anand @kshanand

Kshitij Anand

The Sensex closed just shy of Mount 35K on Friday but has rallied over six percent so far in April. The bulls managed to push the index higher in April but the Sensex is still trading over four percent short of its record peak of 36,443.98.

While the index might have to rally another 1,400 points to touch a fresh peak, the momentum on D-Street drove 195 stocks to fresh record highs in April. These include: MRF, Nestle India, Abbott India, Venky’s India, Tata Consultancy Services (TCS), VST Tillers Tractors, Jubilant FoodWorks, Reliance Industries, V-Mart Retail, TeamLease Services, Britannia Industries, Shriram Transport Finance Company, Kotak Mahindra Bank, HCL Technologies, Mindtree, Escorts, Mahindra & Mahindra (M&M), Indiabulls Ventures and Avenue Supermarts (D-Mart).

Most companies such as TCS, Reliance Industries (RIL) and Shriram Transport were in focus on expectations of strong results for the quarter ended March 2018.

Kotak Mahindra Bank and HCL Technologies will announce their earnings this week. Radhakishan Damani's Avenue Supermarts, which hit a market capitalisation of Rs 92,000 crore, will report its result on May 5.

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Experts feel quality names are helping the index break past key resistance levels, which is a positive sign for the bulls and also assures that the momentum is likely to continue. However, they are quick to caution that the same should not be the only qualifier for investors. “Staying with quality stocks which are witnessing momentum is one of the safest bets. But, for the index to hit a fresh record high, a broad-based rally is required.”

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, said that on one hand we have stocks hitting new highs, but there are still plenty of stocks which are trading below their 50-days moving averages.

“Unless they also register fresh breakouts and start contributing, more broad-based strength in the market can’t be witnessed. Momentum, backed by fresh highs, should be the natural choice of investors/traders. That is looking like a safe strategy to play this leg of an upswing,” he said.

On the BSE, more than 300 stocks hit fresh 52-week highs. These include Hawkins Cookers, National Peroxide, Tata Sponge, Divi’s Laboratories, Agro Tech Foods, Tech Mahindra and Mastek.

(Disclaimer: Reliance Industries is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments)

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First Published on Apr 30, 2018 08:54 am
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