Tracking its Asina peers, the Indian market made a gap up start on Thursday. Benchmarks Nifty50 and Sensex gained over half per cent, driven by IT, PSU Bank and auto stocks. The broader Nifty50 opened near 17,750, while the Sensex gained over 400 points in the opening session.
The support also came from the broader market as Nifty Midcap and Smallcap rose half per cent and one per cent respectively.
There is a clear message from the market now. Despite high valuation, global headwinds from elevated inflation, slowing global economy and an ultra-hawkish Fed, the domestic market has been surprisingly resilient, said said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The tape is signalling momentum and bullishness. Investors should not ‘fight the tape’ and take a contrarian view, at least in the near-term. The market may be discounting the robust growth revival in India and the consequent earnings growth,” he said.
Meanwhile, certain stocks came in focus on Wednesday. These stocks were Vodafone Idea, Mastek and EIH ltd. Shares of Vodafone Idea marginally rose by one per cent to Rs 9.87 per share in BSE intraday on Thursday. Mastek traded higher by half per cent to Rs 1847.20 per share on the ex-dividend date, while EIH Ltd declined nearly three per cent to trade at Rs 195 per share on the BSE on Thursday.
Here is what Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, recommends investors should do with these stocks.
EIH: The stock has given a breakout of a bullish inverse head and shoulder formation with the surge in volume on the Daily Chart. The stock has also been forming higher top and bottom formations on the weekly chart. The overall structure looks lucrative as it trades above all its SMA moving averages, and the momentum indicators are also positively poised. On the upside, the counter is facing a susceptible area around Rs. 210; above this we can expect a level of Rs 225, while on the downside Rs. 186 is the important support level.
MASTEK: Primary trend of the counter is following the down trend. The Overall structure looks distorted as it trades below its all-important moving averages, however, it is having a demand zone near 1780. On the upside, 2000 has become an immediate resistance area; above this, we can expect a run-up towards 2200+ levels in the near term. On the downside, if it breaks the 1780 level then 1600 is the next support level.
IDEA: The stock is bottoming out with bullish inverse head and shoulder formation with the surge in volume. Stock is facing resistance at Rs. 10-10.5 zone; above this we are expecting a long run-up towards 12 levels. On the downside, Rs. 9 is major support at any correction while 8.5 is the next critical support level. Momentum indicators are positively poised to support the current strength.
(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.)