The Trade Spotlight | A Game Plan Unveiled for Kalyan Jewellers, Karur Vysya Bank, and Ashok Leyland Today
In a fascinating turn of events, Kalyan Jewellers India soared to an all-time intraday high, displaying a remarkable breakout from its recent consolidation phase. The charts adorned themselves with robust bullish candlestick patterns, accompanied by substantially higher trading volumes, truly a sight to behold.
The market put on an impressive performance on June 16, with the benchmark indices recovering from the previous day's setback and closing at record highs. The driving force behind this rally was a buying frenzy that encompassed most sectors, except for IT.
Witnessing an upsurge, the BSE Sensex catapulted 467 points to reach a staggering 63,385, while the Nifty50 climbed 138 points to 18,826. These upward moves were marked by the formation of bullish candlestick patterns on the daily scale, exhibiting a form of higher highs and higher lows.
Not to be left behind, the Bank Nifty soared by an impressive 495 points, reaching a remarkable 43,938. Meanwhile, the broader markets embarked on an upward journey for the fifth consecutive session, experiencing a seven-tenths of a percent rise and an astounding 1 percent surge in positive breadth.
The spotlight shone brightly on Kalyan Jewellers India, Karur Vysya Bank, and Ashok Leyland, as these stocks took center stage. Kalyan Jewellers India, in particular, surged to an intraday record high, ultimately settling with remarkable gains of nearly 15 percent at Rs 131.1. The stock's breakout from recent consolidation patterns was definitive, and the charts exhibited a robust bullish candlestick pattern accompanied by significantly higher trading volumes.
Karur Vysya Bank
Karur Vysya Bank, on the other hand, witnessed a remarkable surge of over 7 percent, closing at Rs 128, which marked the highest closing level since September 21, 2017. The daily charts showcased a strong bullish candlestick pattern, complemented by healthy trading volumes, thus continuing its upward trend for the fifth consecutive session. The stock gained momentum on June 14, especially after breaking free from the long downsloping resistance trendline that linked the highs of September 18, 2017, and December 15, 2022.
Ashok Leyland
Ashok Leyland experienced a surge in buying interest throughout the week, resulting in a 4.5 percent rise and a close near a nine-month high at Rs 164.40 on Friday. Impressively, the stock witnessed an overall gain of nearly 8 percent for the week. The daily charts revealed a formation of bullish candlestick patterns accompanied by robust trading volumes. The stock is now within reach of its record high of Rs 169.45, standing a mere few rupees away.
Let's now delve into the insights provided by Rajesh Malviya of Axis Securities, who offers guidance to investors regarding these stocks in anticipation of the market's resumption of trading today:
Kalyan Jewellers
Kalyan Jewellers India: Setting a new precedent, the stock soared to an all-time high of Rs 134.90 and closed at approximately the same level, indicative of bullish sentiments. With a remarkable gain of 20 percent last week, the stock has decisively broken through the multi-week resistance zone at Rs 126 levels, showcasing remarkable strength. The buying momentum is accompanied by substantial trading volumes, signaling increased participation in the rally. Furthermore, the stock has recently reclaimed its 20, 50, 100, and 200-day SMAs (simple moving averages) and made a strong comeback, exemplifying the resurgence of bullish sentiment. The RSI (relative strength index) on the daily, weekly, and monthly charts indicates a bullish trend, suggesting a rise in strength. Investors are advised to consider buying, holding, and accumulating this stock, with an expected upside of Rs 150-168 and a downside support zone of Rs 124-113 levels.
Karur Vysya Bank: With a strong upward movement last week, the stock has successfully broken out of its 6-7 month consolidation phase, confirming the presence of bullish sentiment. The stock comfortably resides above its 20, 50, 100, and 200-day SMAs, reinforcing the bullish trend. The "band Bollinger" buy signals on the daily and weekly charts indicate an increase in momentum, further validating the bullish sentiment. The rally is supported by substantial trading volumes, affirming heightened participation. The RSI on the daily, weekly, and monthly charts continues to signal a bullish trend, implying rising strength. Investors are advised to buy, hold, and accumulate this stock, with an expected upside of Rs 145-160 and a downside support zone of Rs 120-115 levels.
Ashok Leyland: Displaying an impressive gain of nearly 8 percent, the stock has confidently broken free from its 8-9 month consolidation range (Rs 158-134) on a weekly closing basis. The breakout is accompanied by substantial trading volumes, indicating a surge in participation. The stock has successfully reclaimed its 20, 50, 100, and 200-day SMAs, demonstrating a strong comeback by the bulls. The RSI on the daily, weekly, and monthly charts points towards a bullish trend, signaling rising strength. Furthermore, the weekly chart reveals a "rounding formation" in the prices, which suggests an expected breakout zone around Rs 170 levels. Investors are advised to buy, hold, and accumulate this stock, with an expected upside of Rs 177-185 and a downside support zone of Rs 158-155 levels.
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Disclaimer: The information in this blog post is for educational purposes only. Invest responsibly at your own risk. No liability for gains or losses. Seek professional advice before making investment decisions.
