The Indian stock market ended higher by nearly one per cent on Thursday. Benchmarks Nifty50 and Sensex gained 0.93% and 0.86% respectively as the former closed above 15,500 and the latter added over 400 points.
The benchmarks were supported by a rally in broader markets and sectoral stocks.
Following benchmark indices, Nifty midcap and smallcap closed higher by around 1.3% each.
Led by Maruti, Hero MotoCorp, Eicher Motors, Mahindra & Mahindra and Bajaj auto, which were also top gainers on the Nifty50, Nifty auto gained around 4.5%. Oil & Gas was the only Nifty sectoral index to close marginally in the red.
“The advancement of the southwest monsoon beyond the Eastern parts of the country coupled with a cool off in oil prices buoyed auto stocks today, as they led charge on the benchmark Indices with good support from the IT stocks,” said S Ranganathan, Head of Research at LKP securities.
Engineering Exports have looked up smartly in the first two months of the current fiscal, bringing some cheer to the bulls in an environment which is devoid of positive newsflows, added the expert.
Meanwhile, certain stocks came in focus on Thursday. These stocks were Triveni Turbine, Mangalore Refinery and Petrochemicals Ltd (MRPL) and Equitas Holdings. Triveni Turbine closed with nearly five percent gain, MRPL declined more than three and half per cent and Equitas Holdings surged over six percent on Thursday.
Here is what Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas, suggests investors should do with these stocks
1. Triveni Turbine
The stock witnessed a sharp reversal on June 23 after a substantial correction from the beginning of April 2022. Structurally, in the last few sessions, the stock was gearing up for a run up. The daily momentum indicator triggered a bullish crossover recently. On the higher side, however, the 200 DMA acted as a cap for the day. Once that key moving average, which is near 181, is crossed then the stock can march towards 195 & subsequently to 207.
2. Mangalore Refinery and Petrochemicals
The stock had a marvelous run up from the beginning of April till mid-June. Post that the stock has entered in correction mode. On the way down, the stock has broken its crucial daily moving averages. The short-term momentum indicators are in bearish mode. This shows that the bears are having the upper hand currently. Thus, the stock is likely to move down towards its daily lower Bollinger Band, which is near 65
3. Equitas Holdings
The stock has stepped into a consolidation mode after a sustained decline over the last several weeks. As a result of the multi-week fall, the daily momentum indicator was pushed into the oversold zone & needed some recovery. Structurally, the consolidation is expected to develop in between the 20 DMA & the daily lower Bollinger Band i.e. in the range of 87-75
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)