The market closed higher for a second day on June 24 on positive global cues. Even sentiment indicators like the relative strength index (RSI) and Stochastic suggested a bullish mood.
Most of the sectors, barring IT, participated in the rally. Bank, auto, financial services, FMCG, and metal indices gained 1.2-2 percent.
The Sensex climbed 462 points to 52,728 and the Nifty jumped 143 points to 15,699.
The broader space was also strong, as the Nifty midcap 100 index gained 1.4 percent and the smallcap 100 index 1.76 percent.
India VIX, which measures the expected volatility in the market, declined 1.58 percent to 20.55 levels, giving some comfort to the bulls.
Stocks that were in action included Strides Pharma Science and Info Edge, which were among the top five gainers in the futures & options segment.
Strides Pharma rallied 9.5 percent to Rs 343 and Info Edge jumped 4.3 percent to Rs 3,920, while Minda Corporation surged 10 percent to Rs 185.
Here’s what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Strides Pharma Science
Since April 2021, the stock has been in a downtrend, forming a series of lower tops and lower bottoms, however, for the past couple of months, it is consolidating around its 10 -year major support zone of Rs 280-270.
With the strong gains in the week gone by, the stock has decisively broken its one-year “down-sloping” trendline at Rs 320 on a weekly closing basis, indicating a shift of trend to bullish. This breakout was accompanied by huge volumes, signalling increased participation.
The stock is also well placed above its 20, 50 and 100- day simple moving averages (SMAs), which support and reconfirms the bullish trend. The daily and weekly strength indicators have turned bullish as well from the oversold zone, implying rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 385-420, with a downside support zone of Rs 310-280.
For the past six-eight months, the stock is trending lower, forming a series of lower tops and bottoms with a “down-sloping channel” but in the past couple of weeks, the stock has inched towards the channel’s upper resistance zone of Rs 4,000-4,100.
Any decisive breakout above this resistance zone will indicate trend reversal. Currently, the stock is well placed above its 20-day SMA, which supports bullish sentiment in the near term.
Huge volumes spurt around Rs 3,500-3,300 signals increased buying interest near the support zone. The daily and weekly strength indicators have turned bullish from the oversold zone, implying rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 4,200-4,500, with downside support zone of Rs 3,700-3,500.
On the weekly chart, the price action has formed a “Hammer”, a short-term trend reversal pattern, along with rising volumes, indicating buying at lower levels. The stock has recaptured and closed above its 200-day SMA, indicating positive bias.
This buying was observed from a major support zone of Rs 165-160, which remains crucial. The daily strength indicator has turned bullish from the oversold zone, which implies rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 205-220, with downside support zone of Rs 160.
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