The equity benchmarks as well as broader markets snapped a two-day correction and started off the week on a positive note on June 12. Technology, select metal and oil & gas stocks supported the market, whereas the selling was seen in select banking & financial stocks.
The BSE Sensex rose 99 points to 62,725, and the Nifty50 gained 38 points at 18,602, while the Nifty Midcap 100 and Smallcap 100 indices rallied more than half a percent and nearly nine-tenths of a percent respectively on positive market breadth.
Bank Nifty closed its volatile session flatly with a negative bias, down 45 points at 43,944. India VIX, which measures the expected volatility for the next thirty days in the Nifty50, remained in a range of 11-12 levels.
Stocks that outperformed broader markets included Linde India, Nazara Technologies, and REC. Linde India has decisively broken its consolidation range of the last nearly couple of months, with a big bullish candlestick pattern on the daily charts with significantly higher volumes. The stock rallied over 5 percent to Rs 4,196.
Nazara Technologies has also seen a decisive breakout of the current month's consolidation range and jumped 5 percent to Rs 661, the highest closing level since October 28, 2022. The stock has formed a long bullish candlestick pattern on the daily scale with above-average volumes.
REC has broken the four-day consolidation range with a long bullish candlestick pattern on the daily charts, followed by another similar kind of candle formation on Monday. The stock climbed nearly 4 percent to Rs 154.6, the highest closing level since May 24, 2017, with above-average volumes.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
The stock is currently trading above multi-year resistance levels from 2017, indicating strong momentum. Recently, the stock retested the Rounding Bottom Pattern and experienced an upward bounce, with the breakout occurring in late April 2023.
Furthermore, both the weekly and daily timeframe's relative strength index (RSI) is showing a rising trend and has consistently remained above the 60 mark, indicating the presence of positive momentum.
We advise traders and investors to buy this stock for the target of Rs 174 where the stop-loss must be Rs 148 on the closing basis.
The stock has consistently formed higher highs and higher Lows after finding support around Rs 500 levels. Furthermore, there has been a breakout of the Bullish Flag and Pole pattern, signaling the initiation of an upward trend.
The 18 and 36-period exponential moving averages on the daily timeframe have provided variable support. While the relative strength index (RSI) remaining above the 60 mark indicates the presence of positive momentum.
We advise traders and investors to buy this stock for the target of Rs 780, with a stop-loss at Rs 630 on a closing basis.
Linde India is experiencing a significant upward trend, approaching its historical high, indicating a robust momentum. Additionally, an observation of the stock breaking the Symmetrical Triangle pattern suggests a continuation of the previous uptrend.
The Bollinger bands on the daily timeframe have widened, indicating increased volatility, typically associated with an upward movement.
Furthermore, the Relative Strength Index (RSI) on the daily timeframe has exhibited a breakout, confirming the presence of positive momentum.
We recommend traders and investors buy this stock for the target of Rs 4,645, with a stop-loss of Rs 4,020.
Disclaimer: The views and tips expressed by investment experts on Moneycontrol.com are their own, 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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