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Trade Spotlight | What should you do with M&M, Godfrey Phillips, CG Power and Industrial Solutions on Tuesday?

Mahindra and Mahindra was the biggest gainer among Nifty50 stocks, climbing 3.6 percent to Rs 1,310 and formed healthy bullish candlestick pattern on the daily charts with above average volumes, with making higher high higher low formation for second straight session.

January 10, 2023 / 08:31 AM IST
 
 
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The market rebounded sharply on the first day of the week with the benchmark indices rising 1.4 percent on the back of short-covering in quality beaten-down stocks and positive global cues.

In fact, the indices recouped all their previous day's losses. The BSE Sensex rallied nearly 850 points to 60,747, while the Nifty50 jumped more than 240 points to 18,101 and formed long bullish candle on the daily charts with making higher high higher low formation.

The broader markets also traded higher but underperformed frontliners. The Nifty Midcap 100 index gained nearly 1 percent and Smallcap 100 index rose half a percent on positive breadth.

About three shares advanced for every two declining shares on the NSE.

The volatility index India VIX also eased by 2.5 percent to 14.65 level, making the trend favourable for bulls.

Stocks that were in action included Godfrey Phillips India which jumped 6.5 percent to end at a record closing high of Rs 2,128 and formed a long, bullish candle on the daily charts with healthy volumes, with higher high higher low formation for the second session in a row. The stock has seen a strong breakout of three horizontal resistance trendlines - one adjoining December 13, 2022 and January 6, 2023, second December 19, 2022 and January 3, 2023, and third December 9, December 16 and January 5, 2023, indicating positive mood.

CG Power and Industrial Solutions shares rallied 7 percent to end at a record closing high of Rs 289.5 and formed a robust bullish candle on the daily charts with above average volumes. The stock has seen a breakout of downward sloping resistance trend line adjoining December 14, 2022 and January 4, 2023, as well as horizontal resistance trend line adjoining November 25, November 28, and December 7, 2022.

Mahindra and Mahindra was the biggest gainer among Nifty50 stocks, climbing 3.6 percent to Rs 1,310 and formed healthy bullish candlestick pattern on the daily charts with above average volumes, with making higher high higher low formation for second straight session. The stock has given a decisive breakout of horizontal resistance trend line adjoining multiple touchpoints - August 17, November 16, December 2, and December 19, 2022.

Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:

Godfrey Phillips India

Godfrey Phillips has been experiencing an uptrend, with successive peaks and troughs being consistently higher than those seen in the past.

The stock price has recently surged above neckline of the Inverse Head & Shoulder pattern, which is often seen as a bullish sign and may suggest that the stock is set to enter an uptrend.

The stock's price has consistently remained above two key moving averages, the 13-day and 26-day exponential moving averages, which have provided strong support for the stock's price.

While the momentum indicator MACD (moving average convergence divergence - 13, 26, 9) has shown a positive crossover above zero line reflecting the tendency of the prices to trend.

We recommend traders and investors to buy this stock for the target of Rs 2,480 for stop-loss of Rs 1,960 strictly on the closing basis.

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Mahindra and Mahindra

M&M's stock price is currently near its all-time high, indicating that it has been experiencing strong upward momentum. The stock in the latest trading session has given a breakout from the Descending Triangle pattern, which may indicate that the stock's prior uptrend is set to continue.

The Bollinger bands, which are a measure of volatility on the daily time frame, have recently begun to widen, possibly signaling increased price movement and an upward trend.

The Relative Strength Index (RSI) on the daily time frame has also recently broken above a key level, suggesting increasing momentum and potential upward movement in the stock's price.

We recommend traders and investors to buy this stock for a target of Rs 1,430 with a stop-loss of Rs 1,237 strictly on the closing basis.

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CG Power and Industrial Solutions

CG Power and Industrial Solutions has been in an upward trend, with the stock's price consistently finding support at its bullish trend line since July 2022.

The stock prices have shown a change in its polarity around the level of Rs 260, pointing towards the rising bullish sentiment.

The stock's price has remained consistently above two key moving averages, the 18-day and 36-day exponential moving averages, and a technical indicator known as the super trend (7, 2) has recently turned positive, possibly signaling increased volatility and an upward trend.

The momentum indicator RSI has shown a bullish reversal reflecting strong momentum in the underlying uptrend.

We recommend traders and investors to buy this stock for the target of Rs 325 with a stop-loss of Rs 270 strictly on the closing basis.

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Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sunil Shankar Matkar