The market started off the week on a strong note as the Nifty50 scaled above 19,300 and the BSE Sensex shot past the psychological 65,000 mark for the first time, backed by banking and financial services, FMCG, oil and gas, and metal stocks, on July 3.
The BSE Sensex jumped nearly 500 points to 65,205, and the Nifty50 spiked over 130 points to 19,323, forming bullish candlestick pattern on the daily charts. The broader markets, too, closed higher, as the Nifty Midcap 100 ended at record closing high of 35,843.50, up 0.25 percent, and the Nifty Smallcap 100 index climbed 1.2 percent.
The Bank Nifty also hit 45,000 mark for the first time and also saw record closing high of 45,158, up over 400 points, while the Nifty IT index saw profit booking, down 138 points to 29,425.
Stocks that were in action on Monday included Fertilisers and Chemicals Travancore (FACT), Kalpataru Projects International, and Bank of Baroda. FACT hit an intraday record high of Rs 478.80 and also saw all-time closing high of Rs 470, up over 8 percent. The stock has formed long bullish candlestick pattern on the daily charts, with above average volumes and sustained above all key moving averages.
Kalpataru Projects International has seen a breakout of horizontal resistance trendline adjoining highs of January 24, March 31, and May 9 this year, and formed bullish candlestick pattern on the daily scale with above average volumes. The stock jumped 3.5 percent to Rs 555.6 on the NSE.
Bank of Baroda shares climbed 4.6 percent to Rs 199.10, the highest closing level since August 21, 2015, and formed long bullish candlestick pattern on the daily timeframe for yet another session. The stock has made higher high, higher low formation, 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:
Kalpataru Projects International
The stock has shown a strong consolidation phase between the levels of Rs 545 and Rs 500 following a correction from the March 2023 levels of Rs 597. This consolidation phase indicates a solid foundation and suggests that the stock has established support in this range.
Moreover, there has been a recent breakout of the Rectangle pattern, which signifies the start of an upward trend. This breakout further supports the view that the stock is likely to move higher.
Additionally, the Bollinger Bands have widened, indicating increased volatility and suggesting a potential upward movement in the stock's price. This rising volatility further supports the positive outlook for KPIL.
Furthermore, on the daily timeframe, the relative strength index (RSI) has experienced a breakout, providing additional confirmation of the positive momentum in the stock.
We advise traders and investors to buy this stock for the target of Rs 600 where the stop-loss must be Rs 530 on the closing basis.
The stock is currently nearing its all-time high, indicating a significant and robust momentum in the price movement. This suggests that the upward trend is strong and likely to continue.
Moreover, there has been a breakout of the Ascending Triangle pattern, which is a reliable technical pattern that often signifies the continuation of an upward trend. This breakout further supports the notion that the stock's prices are poised for continued up move.
Additionally, the stock's prices are currently trading above the 12-day exponential moving average (EMA), which acts as a dynamic support level. This reinforces the bullish sentiment and provides further confirmation of the ongoing uptrend.
Furthermore, the RSI has consistently stayed above the 60 mark. This indicates the presence of positive momentum in the stock's price movement.
We advise traders and investors to buy this stock for the target of Rs 230 where the stop-loss must be Rs 189 on the closing basis.
Fertilisers and Chemicals Travancore
The stock is currently exhibiting a robust and persistent upward trend, reaching its historical high. This indicates a strong momentum in the ongoing trend. Furthermore, there are compelling signs of the stock breaking out of a Cup & Handle pattern, which suggests that the upward movement is likely to continue.
Additionally, when observing the daily timeframe, we can see that the stock prices have consistently rebounded from the 12-day EMA, acting as a dynamic support level. This further reinforces the positive outlook for the stock and strengthens the belief in its upward trajectory.
Moreover, the RSI has consistently remained above the 60 mark, indicating the continual presence of positive momentum in the stock's price action.
We recommend traders and investors to buy this stock for the target of Rs 540 with a stop loss of Rs 432.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
