The market on December 13 recovered further from the recent lows, with the Nifty50 reclaiming the 18,600 level, taking support at 18,300-18,500. Falling CPI inflation for November and an upside in global counterparts also supported the market.
The BSE Sensex rose more than 400 points to 62,533, while the Nifty50 jumped over 100 points to 18,608 and formed a bullish candle on the daily charts, making higher high higher low formation.
The broader markets too traded in line with the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices rising around half a percent each, while the volatility index India VIX declined by 3.26 percent to 16-month low of 12.88 levels.
Stocks that performed better than the broader markets included CSB Bank which rallied more than 7 percent to Rs 258.35, forming large bullish candle on the daily charts for second straight session, with healthy volumes. The stock has seen a breakout of downward sloping resistance trend line adjoining October 21 and December 12 this year.
Aegis Logistics shares gained nearly 7 percent to Rs 362.40, the highest closing level since July 12, 2021, and formed long bullish candle on the daily charts with above average volumes. The stock has seen a breakout of long downward sloping resistance line adjoining several points - July 13, 2021, and December 7, December 8, & December 9, 2022.
MCX India was also in action, rising nearly 4 percent to Rs 1,644, the highest closing level since December 12, 2021, and formed robust bullish candle on the daily charts with higher volumes. The stock has given a decisive breakout of long downward sloping resistance trend line adjoining October 14, 2021, and December 8, 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:
After registering the top of Rs 374 in July 2021, the said counter has been making lower highs & lower lows structure which resulted in a 52 percent cut in stock price. Immediately after June 2022, CSB changed its price structure completely by making higher highs and higher lows and was able to make a solid base near Rs 220.
Recently the counter witnessed 14 months old trendline violation (refer to the chart) followed by massive buying interest.
On the indicator front, weekly MACD (moving average convergence and divergence) gave the bullish cross above the zero line along with weekly DMIs (directional movement index) above 25 levels hinting at positive momentum in coming sessions.
One can buy in a small tranche at current market price (Rs 258) and another around Rs 245 with an upside target of Rs 295 and the stop-loss would be Rs 235.
MCX is currently trading well above its 200 DEMA (day exponential moving average) OHLC (open, high, low, close) band, thus confirming its uptrend (refer to the chart).
In the previous trading session, the said counter gave a clean breakout from its tight range of Rs 1,550-1,600 along with the rising curvature of the 200 DEMA OHLC BAND adding more confirmation for the upside.
On the indicator front, the daily MACD gave a bullish reverse divergence along with the daily RSI (relative strength index) bouncing back from 60 levels thus indicating more strength in the counter.
One can buy in a small tranche at current market price (Rs 1,644) and another around Rs 1,625 with an upside target of Rs 1,720 and the stop-loss would be Rs 1,599.
From February 2022 till date the said counter gave a whopping 113 percent return and now it is about to approach its historical resistance of Rs 387.
One should start booking profits in the range of Rs 370-385 as mentioned levels are around its previous top. Last but not least, the weekly MACD is overstretched hinting toward a pause or some correction. Thus fresh longs are not advised. As of now wait and watch.
