The mood in the markets remained largely positive with the Nifty maintaining the 19,500 mark on September 5, which can act as an immediate support for the index, followed by 19,400-19,300 levels. Till the index holds 19,500 in the coming sessions, 19,600 is expected to be surpassed on the index, experts feel.

The Nifty50 jumped 46 points to 19,575, and the BSE Sensex gained 152 points at 65,780, while the broader markets ended at fresh record closing highs, continuing the uptrend for the seventh straight session. The Nifty Midcap 100 and Smallcap 100 indices gained 1 percent and 0.8 percent on positive breadth.

The Bank Nifty has taken a rest, but still held on to the 44,500 mark, falling 46 points to 44,532, while the Nifty IT extended uptrend for the sixth session in a row, rising 201 points to 32,365.

Stocks that were in action included NOCIL, Jubilant Foodworks, and Bank of India, which saw strong breakouts in previous session. NOCIL has rallied 7.8 percent to Rs 240.50, the highest closing level since January 3, and formed robust bullish candlestick pattern on the daily scale. The stock has seen a decisive breakout of downward sloping resistance trendline adjoining multiple touchpoints, with significantly higher volumes, which is a positive sign.

Jubilant Foodworks has also seen a breakout of falling resistance trendline adjoining highs of October 6 last year and August 7 this year, with robust volumes. The stock gained 6 percent to settle at Rs 533 and formed strong bullish candlestick pattern on the daily charts, with making higher highs, higher lows formation since March lows.

Bank of India rallied 4.5 percent to Rs 93.40 and saw a breakout of downward sloping resistance trendline adjoining highs of December 15 last year and August 18 this year, with strong volumes. The stock has formed long bullish candlestick pattern on the daily timeframe, continuing uptrend for third straight session.

Here’s what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:

Bank of India

The stock is part of the PSU sector, which has been showing a strong upward trend. In October 2022, the stock experienced a significant surge in price, nearly doubling in value from October to December. However, after this strong rally, the stock entered a period of consolidation both in terms of price and time.

Recently, the stock has formed what can be described as a quasi “Double Bottom” pattern, and it broke above this pattern today. In the coming trading sessions, it will be crucial for the stock to maintain its position above Rs 84 levels to avoid an extension of the consolidation period.

If it manages to sustain above this level, the stock has the potential to reach levels around Rs 110-115, indicating a possible further upward movement.

Jubilant Foodworks

The stock underwent a significant price correction from September 2022 to the end of that year. However, following this correction, the stock entered a consolidation phase and formed what can be described as a Cup and Handle pattern. This pattern might appear somewhat complex, but it gained clarity recently when the stock broke above the right lip of the pattern.

This breakout was characterized by strong price intensity and above-average trading volumes. As a result, it is likely that the stock will aim for levels around Rs 590-600 in the coming weeks, indicating the potential for further upward movement. It’s important to note that a critical support level can be identified at Rs 505.

NOCIL

The stock had experienced a notable corrective phase starting from September 2022. Eventually, it found stability in the price range of Rs 200-210. Since the beginning of the current year, the stock has been consolidating within a broad range of Rs 200-235. In an encouraging development, the stock recently staged a robust breakout, accompanied by above-average trading volumes.

As a result, it is now expected to challenge Rs 255-260 zone, signifying the potential for further upward movement. It’s important to highlight that there is critical support identified at Rs 233, which investors and traders should keep in mind.

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