Stocks
Bulls retained their tight control over Dalal Street for four days in a row, taking the benchmark indices to a four-week high on April 5, aided by FMCG, technology, pharma, banking & financial services, and select metal stocks.
The BSE Sensex rose nearly 600 points to 59,689 and the Nifty50 climbed around 160 points to 17,557 and formed a long bullish candlestick pattern on the daily charts.
But the broader markets were mixed in trade, with the Nifty Midcap 100 index closing flat, and Smallcap 100 index rising seven-tenth of a percent but the breadth remained very strong for yet another session. About three shares advanced for every falling share on the NSE.
Stocks that were in action included FSN E-Commerce Ventures (Nykaa) which rallied nearly 8 percent to Rs 136.65 and formed a long bullish candlestick pattern on the daily charts, after taking support at around Rs 121-122 levels in the previous session and defended the all-time low of Rs 120.70 on January 23 this year.
Welspun India clocked more than 5 percent rally for the second consecutive session to Rs 71, the highest closing level since February 17 this year. The stock has formed a robust bullish candlestick pattern on the daily scale for yet another session, making a higher top higher bottom formation for the third straight session.
Tejas Networks shares climbed 2.5 percent to Rs 623 and formed a long bullish candlestick pattern on the daily scale with above-average volumes, continuing the uptrend for the fifth day in a row. The stock traded above all key moving averages (21, 50, 100 and 200-day EMA - exponential moving average).
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:
For the last couple of months, the said counter has been trading in a range of Rs 560-640 levels. A clean breakout is needed for fresh longs. So, unless we don't get a decisive close above Rs 645 on a daily scale fresh longs are not recommended.
If someone has already bought, it is recommended to book partial profits in the range of Rs 630-640 as it can act as a stiff resistance.
As of now wait and watch.
After registering a top of Rs 429 on November 26, 2021, the said counter has been making lower top lower bottom structures which resulted in a 71 percent cut in price. At the current juncture, it has made a clear Bullish Bat pattern near Rs 125-126 levels which is looking lucrative buy.
Also, it is accompanied by an impulsive structure on the daily scale of RSI near oversold levels of 30 thus complementing the bullish stance in the counter in near terms.
One can buy in small tranches around Rs 136-137 and another around Rs 130-131 for an upside target of Rs 151, keeping the stop-loss at Rs 125.
Since the last 2 trading sessions, the said counter has witnessed massive buying interest. Moreover, on a daily scale, it has formed a bullish bat around Rs 65-67 levels.
Even moreover interesting thing to watch is the bullish regular divergence on a daily scale of the RSI exactly near our reversal zone of Rs 65-66. Having said that there is a trendline break in daily RSI and price action (refer to the chart).
One can buy in the range of Rs 68-72 with an upside target of Rs 86 and stop-loss would be Rs 61 on a daily close basis.
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