Bulls took control of market on Thursday pushing Nifty50 as well as S&P BSE Sensex to a fresh record high while mid & smallcap stocks outperformed after 3 days of underperformance.
The S&P BSE Midcap index rose 1.07 percent while the S&P BSE Smallcap index closed with gains of nearly 2 percent on Thursday.
Sectorally, buying interest was seen in utilities, power, capital goods and IT, while selling pressure was visible in the energy space.
Stocks that were in focus include VIP, which rose 20 percent to hit a 52-week high, Max Healthcare (gained nearly 10 percent), and Bharat Forge (closed with gains of nearly 6 percent) on Thursday. All three stocks hit a fresh 52-week high.
Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:
The stock has rallied by about 20 percent on August 12th. After a big gap-up opening on Thursday, it quickly surpassed Rs. 435 resistance mark and maintained intensified momentum throughout the day.
On the short term time frame, the stock has formed a strong price-volume breakout pattern. The texture of the pattern suggests that the breakout action will continue in the near term if the stock succeeds to trade above Rs 435 level.
For the swing traders, Rs. 435 should be the sacrosanct level. If the stock trades above the same then we can expect the uptrend to continue up to Rs.500-525 levels.
After a sharp reversal from Rs. 280, the stock comfortably surpassed the previous resistance zone of Rs. 306. On the daily chart, the stock has formed a higher bottom series pattern along with positive SAR series which indicates an uptrend likely to continue in the near term.
(SAR is a technical indicator which uses a trailing stop and reverse method to identify suitable exit and entry points)
It has also formed a range breakout formation which indicates high chances of a medium-term uptrend from the current levels.
For the positional traders, Rs.305-310 should be the key level to watch, and if the stock manages to trade above the same then we can expect the uptrend to continue up to Rs. 350-365.
Post the short-term price correction, the stock took support near the 50-day SMA and reversed sharply. On the daily and weekly charts, it has formed a strong price-volume reversal formation which is broadly positive for Bharat Forge Ltd.
After a long time, the stock succeeded to close above the 800 mark and it also formed a strong bullish candle which indicates a further uptrend from the current levels.
However, the intraday chart suggests a temporary overbought situation, and traders may take a cautious stance near the 865 resistance level.
As long as it is trading above Rs. 810 the uptrend texture is likely to continue up to Rs. 865-895 levels. However, if the stock starts trading below Rs. 810 then the uptrend could be vulnerable