Following a lower close on the day of the interim budget, the Indian market recovered on Friday. The Nifty50 finished above 21,800 levels, and the S&P BSE Sensex increased by more than 400 points.
Sector-wise, the oil and gas, energy, metal, and public sector stock markets saw purchasing, while the banking and telecom sectors saw selling.
Focused stocks included NHPC, which closed with gains of more than 10% to set a new record high, NBCC, which had gains of more than 19%, and SJVN, which concluded with gains of more than 11% to set a new record high.
Three stocks—either a new 52-week high, an all-time high, or a volume or price breakout—have been compiled into a list.
We had a conversation with an analyst regarding the proper way to evaluate these equities from an educational standpoint on the following trading day:
Analyst: Alpha Bot Capital’s founder, Sanket Thakar, CMT
NBCC:
From its previous peak in 2017, NBCC has shown a multi-year breakout, establishing a traditional rounded bottom pattern. Significant volume has also been seen at the breakout, which is bolstering the bullish side movement’s conviction.
The two closest Fibonacci extension levels—195 and 224—are the targets that NBCC is going for. The rounding bottom pattern’s third objective is Rs 260.
NHPC: With strong momentum in play, NHPC has reached its all-time high levels today. The overall trend is up, but the current short-term upmove appears to be a little overextended. The RSI has entered the overbought zone, indicating that the current upside rally may cool off a little, possibly returning to the lower retracement support of 92.75 & 86.15. For traders who trade short-term, booking profits appears to be a wise move in this scenario.
SJVN: SJVN has reached both its prior flag pattern target and its all-time high levels. The overall trend is still very positive right now, but it has already entered overbought territory, which may temporarily halt the surge.
Trader short-term profit booking on SJVN might push the market down to the closest retracement support levels, which are 131 and 121.
