Market
The market managed to close with moderate gains after volatility and rangebound trade on April 3, continuing uptrend for the third consecutive session. The Nifty50 gained nearly 40 points to close at 17,398, while the BSE Sensex jumped 115 points to 59,106.
Auto, banking and financial services, and pharma stocks helped the market close higher, whereas the gains were capped by selling in select FMCG, technology, metal, and oil and gas stocks.
The broader markets also traded higher as the breadth remained in favour of bulls. The Nifty Midcap 100 and Smallcap 100 indices gained 0.4 percent and 0.7 percent, respectively.
Stocks that outperformed the broader markets included Rail Vikas Nigam which rallied 10 percent to Rs 75.35 and formed long bullish candlestick pattern on the daily charts which resulted into expansion of Bollinger Band on both sides. It has seen a breakout of downward sloping resistance trendline adjoining highs of January 16 and February 1.
Oil India shares rose 3 percent to Rs 259.5 and formed small bodied bullish candle on the daily scale with long upper shadow indicating profit booking at higher levels. The trading volume was above average with stock remaining above all key moving averages (21, 50, 100 and 200-day EMA - exponential moving average).
Sonata Software added nearly 3 percent gains to end at record closing high of Rs 859, on top of 11 percent rally in previous session, forming bullish candle on the daily timeframe with long upper shadow. The volumes remained robust for last both trading sessions.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Sonata Software is currently trading at record Highs, which tells that the stock already is in strong momentum.
The recent up move in the stock was preceded by the prices taking support from the neckline of the Rounding Bottom pattern which the stock gave breakout on March 1, 2023.
The prices have surpassed upper Bollinger Band, which shows the rising volatility for an up move. The relative strength index (RSI) on the daily timeframe has shown a bullish reversal which reflects the rising momentum in the prices.
We recommend traders and investors to hold this stock for the target of Rs 960 with a stop-loss of Rs 820 on the closing basis.
RVNL recently has shown a bounce to the upside while higher volumes picking up. This is illustrates the long built up behind the prices.
The stock has also shown a breakout of the Ascending Triangle pattern which indicates beginning of the trend to the upside. The breakout has happened with the formation of breakout Gap.
The stock has shown a positive crossover between 14 & 36-day EMA (exponential moving average) which acted as variable support to the prices indicating continuation of prior uptrend.
The relative strength index (RSI) on the daily timeframe has sustained well above 60 mark reflecting presence of bullish momentum.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 90 with a stop-loss of Rs 70 on the closing basis.
Since October 2022, Oil India has formed a pattern of higher highs and higher lows, indicating a positive trend in the stock's performance.
A change in the stock's polarity around the level of Rs 244 suggests an increase in bullish sentiment. The stock is above key moving averages, such as the 50-day and 200-day exponential moving averages, further confirming an uptrend.
The RS) on the daily timeframe has maintained a range of 40 – 80 reflecting presence of positive momentum. We recommend traders and investors to hold this stock for the target of Rs 290 with a stop-loss of Rs 250.
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