The S&P BSE Sensex rose by 160 points while the Nifty50 closed above 18600 levels.
Stocks that were in focus include names like Bank of India which was up nearly 8%, Canara Bank NSE 0.46 % gained over 3% and Bank of Baroda NSE 0.96 % was up more than 6% on Thursday.
Here’s what Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd recommends investors should do with these stocks when the market resumes trading today:
Bank of India: Buy
The stock made a fresh 52-week high of 101.20 on Thursday. It has rallied over 100% so far in this quarter. The sharp price-dominating uptrend rally surprised most traders.
On the daily and weekly charts, the stock has formed a breakout continuation pattern which is grossly positive for the Bank of India.
However, on the short-term time frame, momentum indicators indicate the stock is in the overbought zone and the high chances of quick short-term price correction are not ruled out if the stock trades below 95.
For the next few trading sessions, 95 would be the trend decider level for the bulls, sustain above the same we can expect a continuation of an uptrend up to 110.
Further, the uptrend may also continue which could lift the stock to 115. On the flip side, the dismissal of 95 could possibly trigger quick short-term correction up to 90-87.
Canara Bank: Buy
On Thursday, the stock rallied nearly 3.5% and also formed a reversal formation, post short-term correction. The stock has formed a double bottom formation and reversed sharply.
Currently, the stock consistently is taking support near the 20-Day SMA (Simple Moving Average). We are of the view that, as long as its trading above 20-Day SMA or 310 the uptrend formation is likely to continue
Above the same, the stock could move up to 335-350. On the flip side, below 310 traders may prefer to exit out from the trading long positions.
Bank of Baroda: Buy
The stock has rallied nearly 10% so far this week. On last Thursday, the stock opened with a strong note and successfully cleared the 178-180 resistance zone.
Post breakout, positive momentum got intensified.
A promising price volume uptrend continuation formation indicates further upside from the current levels.
For trend-following traders, 180 would be the key level to watch out for. Above which, it could move to 200 -205. However, below 180, the uptrend would be vulnerable.