The market snapped a seven-day losing streak to bounce back on September 30, driven by banking & financial services, auto, and metal stocks.
The 50 basis points repo rate hike by the Reserve Bank of India, which retained the inflation forecast at 6.7 percent but lowered growth estimates to 7 percent from 7.2 percent for FY23, was largely in line with street expectations.
The Sensex rallied more than 1,000 points to 57,427, and the Nifty jumped 276 points to 17,094, while the Nifty midcap 100 and smallcap 100 indices gained 1.6 percent each.
India Cements and Granules India outdid the market and were the biggest gainers in the futures & options segment.
India Cements jumped 9.5 percent to Rs 269.10 and formed a strong bullish engulfing pattern on the daily charts with robust volumes. On the monthly scale, it formed three white soldiers' pattern.
Granules India rose 6.5 percent to Rs 345.35, forming a bullish candle on the daily charts and made higher high-higher low formation for a third straight session.
Bharti Airtel shares rallied 4.6 percent to end at a record closing high of Rs 800 and formed a robust bullish candle on the daily chart.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
With the previous week's upmove, the stock decisively broke out of its "multiple resistance" zone of Rs 330 on a closing basis. The breakout was accompanied by huge volumes, indicating increased participation. The daily "Band Bollinger" buy signal indicates increased momentum.
The stock is well placed above its 20, 50, 100 and 200 days simple moving averages, which reconfirm bullish sentiment.
The daily weekly and monthly strength indicator RSI is in a bullish mode, signifying rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 370-385, with a downside support zone of Rs 325-310.
On the weekly timeframe, the stock has confirmed its one-year "multiple resistance" zone of Rs 770. The stock has recaptured its 20-day simple moving average (Rs 772) and rebounded sharply.
The stock is well placed above its 20, 50, 100 and 200-day SMAs, which reconfirms bullish sentiment. The stock is in a strong up trend, forming a series or higher tops and bottoms across all time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 830-855 with a downside support zone of Rs 750-740.
On the weekly time frame, the stock has confirmed a "V" shape breakout at around Rs 250 along with huge volumes. With the week's low (Rs 226), the stock corrected approximately 50 percent and rebounded sharply.
The stock is well placed above its 20, 50, 100 and 200 days SMAs, which reconfirm bullish sentiment.
Investors should buy, hold and accumulate the stock with an expected upside of Rs 285-315, with a downside support zone of Rs 225-220.
