The Indian market continued its rally for the third day as benchmark indices closed higher by nearly two per cent on Monday.
The Indian market continued its rally for the third day as benchmark indices closed higher by nearly two per cent on Monday. Extending the winning streak, the broader Nifty50 closed above 16500 and the Sensex near 55900 as the 30-share index gained more than 1000 points.
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Sectorally, Nifty IT, Consumer Durables and Realty gained the most as these indices settled with around four per cent gains each as all sectoral indices settled in the green.
“A near-term trend reversal is visible in the domestic market, supported by valuation comfort and positive trend in the global counterparts. US Stocks were boosted on softening inflation worries, which will be a crucial factor in deciding the tone of the upcoming Fed policy meeting,” Vinod Nair, Head of Research at Geojit Financial Services.
The easing of long-running lockdown in China also helped in lifting the sentiments across Asian markets, said Nair. “The market is expected to have a positive run in the near term. However, the impact of central bank policies will be a key factor to be monitored,” the expert added.
Meanwhile, the broader markets too witnessed healthy traction wherein Midcap and Smallcap ended higher by more than 2% each.
Besides, the three-day rally in the market saw investors’ wealth surging by nearly 8 lakh crore. The market capitalisation of the BSE-listed companies rose from Rs 2,50,50,792.13 lakh crore on May 26 to Rs 2,58,42,512.83 lakh crore on May 30, a jump of 7.92 lakh crore, amid the anticipated short-term rally in the market.
As the market ended higher certain stocks also came in focus on Monday. These stocks are Gujarat Ambuja Exports, 3M India and Fine Organics Industries. Gujarat Ambuja Exports closed with more than 12% gains, 3M India ended higher by over 10% and Fine Organics rose nearly 10% on Monday.
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After a higher-level reversal (i.e. 33% fall from its peak level Rs394), the stock respected its 50-day EMA and bounced subsequently. On 30th May’22, the stock witnessed a price volume action. The key technical indicators have given a buy signal on short-term timeframe chart, while medium-term indicators will turn positive on follow-up move.
The stock has potential to explore uncharted territory, which could take it towards Rs410-490-520. In case of decline, the stock will find support around Rs280-265 zone.
3M India
Buy on dips | Target: Rs26,900 | Stop Loss: Rs15,700 | Time Duration: 2-3 Months
Since April 21, the stock remained under pressure and lost more than 40% from its peak level-Rs31,000. Yesterday, the stock bounced respecting its long-term support zone (Rs16,400-15,700) with relatively higher volume. The key technical indicators reversed from the oversold zone and they are positively poised on a medium-term timeframe chart. This could lead the stock towards Rs21,700-22,850-23,900-26,900.
However, violation of long-term support zone will negate probable rise in the stock.
Fine Organics Industries
Buy on dips | Target: Rs5,400 | Stop Loss: Rs4,106 | Time Duration: 3-4 Months
On week ended 3rd September 21, the stock witnessed a breakout from its 20-week EMA and later explored uncharted territory taking support of that moving average. Multiple times, that moving average has worked as a key reversal point and did support a healthy rebound. The key technical indicators are in favor of bulls on major timeframe charts. As per the current set-up, we believe undergoing positive momentum will continue. This could take the stock towards Rs5,000 initially and Rs5,400 subsequently. On the lower side, the stock will continue to find support around its 20-week EMA, which is placed at
Rs 4,106.
