Bulls have maintained their strong hold over Dalal Street, helping the benchmark indices make fresh record highs on November 30, tracking positive trend in global counterparts. Also consistent FIIs buying, and fall in US bond yields also supported the market.
The BSE Sensex closed above 63,000 mark for first time in its history, rising more than 400 points to 63,100, while the Nifty50 jumped 140 points to 18,758 and formed bullish candle on the daily charts with making higher high formation for sixth consecutive session.
The broader markets also participated in the run up on Wednesday, backed by positive breadth. The Nifty Midcap 100 index gained 1 percent and Smallcap 100 index rose six-tenth of a percent.
About 1,223 shares advanced against 766 declining shares on the NSE.
Stocks that fared better than broader markets included Oberoi Realty which rose 2 percent to Rs 924 and formed decent bullish candle on the daily charts with above average volumes. The stock has been making higher high higher low formation for fourth straight session, and seen a breakout of downward sloping resistance trend line adjoining September 15 and November 29 this year, which generally indicates positive mood.
Jindal Steel & Power shares rallied 4 percent to Rs 535.75, the highest closing level since April 29 this year, and formed bullish Engulfing kind of pattern on the daily charts with strong volumes. The stock has seen a breakout of long downward sloping resistance trend line adjoining April 11 and November 23 this year.
Equitas Small Finance Bank was also in action, giving a highest closing since May 19 this year. The stock climbed 6.5 percent to Rs 57 and formed robust bullish candle on the daily charts with healthy volumes. The stock has given a strong breakout of downward sloping resistance trend line adjoining May 19 and November 17 this year and also long downward sloping resistance trendline adjoining July 12, 2021 and November 17, 2022.
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:
Since the last 5 months, the counter has been making higher highs and higher lows thus confirming the uptrend. Recently the counter broke its previous swing high of Rs 52 and comfortably traded above it.
Also, the counter broke the 16-month-old trend line with volume activity picking up from lower levels, which hints at further upside in Equitas Small Finance Bank.
On the indicator front, on a weekly scale, positive DMI (directional movement index) is positive and well placed above 20 levels hinting upside in the coming session. Thus one can buy at current market price (CMP - Rs 57.15) with an upside seen till Rs 65 and the stop-loss would be Rs 49.
The free-fall started from the top of Rs 1,089 on September 16, 2022 and got halted near Rs 860 levels which are also 0.618 retracements of the previous up move (refer to the chart).
The said counter has made double bottom near 0.618 retracements with daily MACD (moving average convergence and divergence) showing bullish divergence thus making it more lucrative.
Thus one can buy at CMP with an upside target of Rs 1,000 and the stop-loss would be Rs 895.
Since the last 4 months, the counter gave a whopping return of 44 percent after giving a V-shaped recovery from the June 2022 low of Rs 303. What is more interesting is that it is approaching its historical resistance of Rs 565-575 volume is deteriorating (refer to chart) which is a sign of exhaustion.
One can book partial profits in the range of Rs 540-575. As of now, no fresh buying is 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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