We had the eighth positive day for the market on April 12 with the benchmark indices closing at the highest level in last seven-week, tracking uptrend in global counterparts and ahead of the CPI inflation print that came in at 5.66 percent for March in aftermarket hours of trade, falling from 6.44 percent in February.
The BSE Sensex advanced 235 points to 60,393, and the Nifty50 climbed 90 points to 17,812, while the broader markets also followed benchmarks suit with the Nifty Midcap 100 index rising 0.65 percent and Smallcap 100 index up half a percent on positive breadth.
About three shares advanced against two declining shares on the NSE.
Stocks that were in action on Wednesday included Fertilisers and Chemicals Travancore (FACT) which was locked in 20 percent upper circuit at Rs 285 and formed robust bullish candlestick pattern on the daily scale with above average volumes. The stock traded above all key moving averages (21, 50, 100 and 200-day EMA - exponential moving average).
Divis Laboratories shares jumped 10 percent to Rs 3,212, the highest closing level since February 2, and formed strong bullish candle on the daily charts with robust volumes. The strong rally has taken the stock above 50 and 100-day EMA).
Nippon Life India Asset Management shares climbed nearly 6 percent to Rs 230, the highest closing level since February 3, and formed long bullish candle on the daily timeframe, with healthy volumes for yet another session. The stock got back above the 50-day EMA (Rs 223.15).
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Nippon Life India Asset Management
After registering the top of Rs 476 on October 19, 2021, the said counter has been making lower top lower bottom structures which resulted in a 58 percent cut in price.
At the current juncture, it has made a bullish divergence on a daily scale of RSI (relative strength index) along with a trendline violation (refer to the chart) which is looking for lucrative buy.
One can buy in small tranches around Rs 226-229 and another around Rs 218-222, with target of Rs 275 and the stop-loss would be Rs 204.
Though Divis Labs has seen massive buying in its previous session, one needs to be alert as it is approaching its historical resistance zone of Rs 3,250-3,300.
One can book profit between mentioned resistance zone. Additionally daily scale RSI is extremely overbought which is matter of concern. As of now wait and watch.
At present the said counter is near to its 50 percent retracement levels of Rs 290 which could be possible resistance for coming few sessions followed by 61.8 percent retracement levels of Rs 314.
Additionally, the current price action is trading inside Kumo of Ichimoku trading system which hints that bulls will need lot of force to clear the top of Kumo. Thus, we advised traders to book profit at resistance zone of Rs 290-300 levels.
Fresh buy is not advised.
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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