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The market staged a healthy performance on June 16 as the benchmark indices recouped the previous day’s losses and registered record closing highs, driven by buying binge in most sectors, barring IT.
The BSE Sensex jumped 467 points to 63,385, while the Nifty50 rose 138 points to 18,826 and formed bullish candlestick pattern on the daily scale, with making higher high higher low formation.
The Bank Nifty climbed 495 points to 43,938, while the broader markets sustained upward journey for fifth consecutive session, rising seven-tenth of a percent and 1 percent on positive breadth.
Stocks that were in action included Kalyan Jewellers India, Karur Vysya Bank, and Ashok Leyland. Kalyan Jewellers India hit an intraday record high, and finally settled with nearly 15 percent gains at Rs 131.1. It has a decisive breakout of recent consolidation and formed robust bullish candlestick pattern on the daily charts with significantly higher volumes.
Karur Vysya Bank jumped over 7 percent to Rs 128, the highest closing level since September 21, 2017 and formed strong bullish candlestick pattern on the daily charts, with healthy volumes, continuing uptrend for fifth consecutive session. The momentum has picked up in the stock on June 14, especially after breakout of long downsloping resistance trendline adjoining highs of September 18, 2017, and December 15, 2022.
Ashok Leyland has seen buying interest throughout the last week, rising 4.5 percent to close near nine-month high at Rs 164.40 on Friday and nearly 8 percent for the week. The stock has seen formation of bullish candlestick pattern on the daily charts, with robust volumes. Now the stock is few rupees away from its record high of Rs 169.45.
Here’s what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Kalyan Jewellers India
The stock has registered an all-time high at Rs 134.90 and closed around the same indicating bullish sentiments. With last week’s 20 percent gains, the stock has decisively surpassed its multi-week resistance zone of Rs 126 levels on a closing basis showing strength.
This buying momentum is also accompanied with huge volumes which signals increased participation in the rally. Recently the stock has recaptured its 20, 50, 100 and 200-day SMA (simple moving average) and rebounded sharply indicating strong comeback of bulls.
The daily weekly and monthly RSI (relative strength index) is in bullish mode which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 150-168, with downside support zone of Rs 124-113 levels.
Karur Vysya Bank
With last week’s strong upmove, the stock has broken out its past 6-7 months consolidation on a closing basis indicating bullish sentiments. The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish trend.
The daily and weekly “band Bollinger” buy signals indicate increased momentum. Huge volumes on this rally reconfirms increased participation.
The daily weekly and monthly RSI is in bullish mode which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 145-160, with downside support zone of Rs 120-115 levels.
Ashok Leyland
The stock has gained almost 8 percent and has decisively broken out 8-9 months consolidation range (Rs 158-134) on a weekly closing basis. This breakout is accompanied with huge volumes indicating increased participation.
Recently the stock has recaptured its 20, 50, 100 and 200-day SMA and rebounded sharply indicating strong comeback of bulls. The daily weekly and monthly RSI is in bullish mode which signals rising strength.
On the weekly chart, the prices are forming a “rounding formation” with an expected breakout zone of Rs 170 levels.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 177-185, with downside support zone of Rs 158-155 levels.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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