The Indian stock market continued its winning streak on Monday, with the S&P BSE Sensex rising over 100 points and the Nifty50 closing just below 17400 levels. The market saw buying interest in sectors such as telecom, auto, consumer durables, and banks, while sectors such as oil & gas, power, IT, and FMCG saw selling pressure.
Some stocks that were in focus on Monday include JBM Auto, Sonata Software, and Rail Vikas Nigam. Senior Technical Analyst Pravesh Gour from Swastika Investmart has given his recommendations on what investors should do with these stocks.
JBM Auto: Buy
According to Pravesh Gour, JBM Auto has witnessed a breakout of a flag formation as well as a 1-year-long breakout on the weekly chart with strong volume. On the daily chart, it has given a triangle formation breakout. The structure of the counter is classical as it is trading above all its important moving averages. The MACD is supporting the current strength, whereas the RSI is also positively poised.
On the higher side, Rs. 750 is acting as an important psychological level, and above this, investors can expect a level of Rs. 800+ in the near-short term. On the lower side, Rs. 635 will act as a major support during any correction.
Sonata Software: Rs. 800 will act as support
Pravesh Gour notes that Sonata Software has witnessed the breakout of a triangle formation. It has retested its previous breakout level at around Rs. 750 after hitting a fresh 52-week high. It is trading above all its important moving averages with a positive bias in momentum indicators. On a longer time scale, it has witnessed a breakout of the flag formation with huge volume.
On the higher side, Rs. 900 is acting as an important psychological level, and above this, investors can expect a level of Rs. 960+ in the near-short term. On the lower side, Rs. 800 is the first support, and below this, Rs. 750 will act as major support during any correction.
RVNL: Buy
According to Pravesh Gour, Rail Vikas Nigam has faced some profit booking at higher levels and formed a demanding zone at around Rs. 55. Now, it is witnessing a triangle formation pattern on the weekly chart. The overall structure of the counter is lucrative, but Rs. 80 is the susceptible level, and above this, Rs. 95 looks like an imminent target in the near term. On the downside, the 50-DMA of 65 is a strong support level.
In conclusion, JBM Auto, Sonata Software, and Rail Vikas Nigam are the stocks that investors can watch out for in the coming days, according to Pravesh Gour. As with all investments, it's important to do your research and invest only after careful analysis and due diligence.
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