The market reversed some of the previous day's gains as traders turned cautious ahead of the outcome of Federal Reserve meeting. Late on May 3 night, the central bank decided to raise the Fed funds rate by 25 bps to fight against inflation and hinted possibility of a pause in the rate hike cycle.
The BSE Sensex fell over 160 points to 61,193, while the Nifty50 declined 58 points to 18,090 and formed a small-bodied bearish candlestick pattern on the daily charts.
The Bank Nifty also traded lower, falling 39 points to 43,313, while the Nifty Midcap 100 index gained 0.3 percent and Smallcap 100 index fell 0.07 percent.
Stocks that bucked the trend on May 3 included Engineers India which surged 14 percent to Rs 94.85, the highest closing level since January 30, 2020, and formed robust bullish candlestick pattern on the daily scale with strong volumes. The stock remained above all key moving averages (5, 26, 50, 100 and 200 EMA - exponential moving average).
Rail Vikas Nigam sustained its uptrend for third consecutive session and registered strong rally (from Rs 77.50 to Rs 130) in last five out of seven days. The stock surged 10 percent to Rs 130 and formed long bullish candlestick pattern on the daily scale, with above average volumes.
Ceat clocked 7.7 percent gains to Rs 1,638, the highest closing level since January 16 this year, and formed healthy bullish candlestick pattern on daily timeframe with strong volumes. The stock traded above all key moving averages and has decisively broken long downward sloping resistance trendline adjoining highs of December 2 last year and April 28 this year.
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:
Recently the said counter has seen a nice up move from Rs 1,400 to Rs 1,580 levels within 3 days. On a daily scale, DMI (directional movement index) has given massive bullish cross hinting towards further upside in the counter.
One can buy in the zone of Rs 1,590-1,610 with an upside target of Rs 1,700 and a stop-loss would be Rs 1,550.
For the last 2 months, the said counter has given a 132 percent return. A current juncture fresh buy is not advised at all.
In case RVNL corrects to Rs 90 levels then only fresh longs are advisable. As of now wait and watch.
On a weekly scale, for the last 3 years, the said counter was trading in a range of Rs 55-90. In the previous trading session, it gave a clean breakout which hints towards further upside in the counter.
One can buy in the zone of Rs 93-97 with an upside target of Rs 123 and a stop-loss of Rs 82.
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.
