The market closed off day's high amid mixed trend in global counterparts, and sustained uptrend for fourth consecutive session on October 19. Select banking & financial services, FMCG and oil & gas stocks helped the market close in green.
The BSE Sensex rose nearly 150 points to 59,107, while the Nifty50 climbed 25 points to 17,512 and formed small bodied bearish candlestick on the daily charts.
The broader markets also closed with moderate gains with the Nifty Midcap 100 and Smallcap 100 indices climbing little more than 0.2 percent each.
Stocks that were in focus and outperformed broader markets included PVR which gained more than 3 percent to close at Rs 1,781, continuing uptrend and forming decent bullish candlestick pattern on the daily charts for second consecutive session after high wave kind of pattern formation on Monday. Also there was a breakout of long downward sloping resistance trend line adjoining August 4 and September 14.
BLS International Services shares gained 5 percent at end at record closing high of Rs 323, forming bullish candle on the daily charts with above average volumes. The stock continued its uptrend for eighth consecutive month and making higher high higher low formation for seventh month in a row.
RPG Life Sciences was another stock that we selected for trade spotlight, rising 4 percent to end at record closing high of Rs 855.80. It has seen high wave kind of pattern formation on the daily charts, and bullish candle for fifth consecutive month.
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:
Though BLS looks lucrative at the current juncture one should keep in mind that it has appreciated 270 percent since January 2022 till date.
On the indicator front, weekly 21 period ROC (price rate of change) has formed a negative divergence along with weekly MACD (moving average convergence and divergence) is overstretched which is hinting towards an early reversal sign. Last but not least, the said counter is trading near one of the extreme ratios of 2.618 among the harmonic arsenal which is adding more confirmation for early reversal.
Thus one should book a profit between Rs 325-345 if already holding. Fresh buying is not advised at current levels.
Since August 2022, the counter observed a free fall from Rs 2,215 to Rs 1,630 and has stabilized near its historical support of Rs 1,700. From the candlesticks pattern perspective during October 2022 month the counter displayed pair of Dojis followed by healthy volume which is a hinting upside.
From the indicator perspective, the daily RSI (relative strength index) has reversed from 40 levels along with the daily MACD making a bullish cross which further confirms the upside in the counter.
One can buy in a small tranche at mentioned levels and buy another tranche at around Rs 1,740 levels (if retested again). The upside target is expected till Rs 1,900 and with a stop-loss of Rs 1,690.
Though RPG Life looks lucrative at the current juncture one should keep in mind that it has appreciated by 97 percent since May 2022 till date.
Price action is going up and volume is declining on the monthly chart which is an anomaly according to volume price analysis.
On the indicator front, monthly 21 period ROC has formed a negative divergence which is hinting towards an early reversal sign. Last but not least, the said counter is trading between one of the extreme ratios of 1.618-1.9 among the harmonic arsenal which is adding more confirmation for early reversal.
Thus one should book a profit between Rs 870-925 if already holding. Fresh buying is not advised at current levels.
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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