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Stocks like Reliance Industries rose more than 7 percent, Sunteck Realty gained more than 5 percent, and Dilip Buildcon closed with gains of nearly 7 percent on Thursday.
Indian market bounced back on Thursday after closing in the red for two consecutive sessions in a row. The S&P BSE Sensex rallied by over 600 points while the Nifty50 reclaimed 11,400 levels.
Let’s look at the final tally on D-Street on Thursday – the S&P BSE Sensex rose 646 points to 38,840 while the Nifty50 rose 171 points to close at 11,449.
Sectorally, the action was seen in Energy, Oil & Gas, Public Sector, and capital goods stocks while profit-taking was visible in telecom, and metal space.
Stocks like Reliance Industries rose more than 7 percent, Sunteck Realty gained more than 5 percent, and Dilip Buildcon closed with gains of nearly 7 percent on Thursday.
Expert: Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
RIL: Fresh buying can be considered now and on dips
After a strong uptrend rally from Rs 1,400 to 2,200, the stock has been consolidating in the range of Rs 2,000 to 2,200 price ranges.
On Thursday, Reliance Industries opened with a gap-up and maintained strong momentum throughout the day. The stock rallied over 7 percent along with incremental volume activity.
A sharp intraday price volume activity post range breakout indicates a strong possibility of a fresh uptrend from current levels.
In addition, on the daily charts, the stock has formed a Flag breakout formation and a strong bullish candle on the weekly charts which clearly suggest further uptrend in offing.
Unless it closes below Rs 2,220, positional traders could retain an optimistic stance and look for a target Rs 2,450. Fresh buying can be considered now and on dips if any between Rs 2,300 and Rs 2,250 levels with a stop loss below Rs 2,220.Dilip Buildcon: For the bulls, Rs 390 should be the important breakout level to watch
On the weekly charts, the stock has formed a higher bottom series formation. But, after a strong uptrend rally from Rs 290 to Rs 420, the stock is hovering in the range of Rs 350 to Rs 410.
Currently, the stock is witnessing a non-directional activity and it looks like traders are waiting for either side breakout. For the bulls, Rs 390 should be the important breakout level to watch.
If the stock manages to close above the same, we can expect a quick uptrend rally towards Rs 430. On the flip side, trading below Rs 355 may increase further weakness up to Rs 340.Sunteck Realty Ltd: For the next few trading sessions, Rs 250 should be the make or break level
The stock has been consistently forming a higher high and higher bottom series. The series of higher bottom formation suggest that the stock is in a strong uptrend and this wave is likely to continue in the near-term.
Currently, after registering a strong uptrend rally from Rs 180 to Rs 300, the stock is witnessing profit-booking. This week, the stock is down nearly 5 percent so far in the week.
However, the medium-term texture of the Sunteck Realty is robust and any meaningful correction should be the opportunity for traders to add long positions near support levels.
Moreover, the stock is currently hovering near the 200-Day SMA and is trading near the important retracement level of Rs 250.
For the next few trading sessions, Rs 250 should be the make or break level for the positional traders, and if it sustains, we can expect a continuation of uptrend towards Rs 310.
On the other side, dismissal of Rs 250 could possibly increase further weakness up to Rs 238.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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