Although the markets did pretty well during the middle of the day, some selling pressure dragged indices to the red zone by the end of the session. The index closed 0.29% lower at 19,386.7, while the index also fell 0.35% to 11,918.2.
However, investors seemed to take the risk-on approach and were seen as fearless in their buying decisions in some counters. Here are 2 stocks that delivered a sharp rally today.
McLeod Russel India Limited
McLeod Russel India Ltd (NS:) is a famous tea manufacturer in the country, having a market capitalization of INR 202 crore. This is a low-priced counter and therefore gets special attention from retail investors during times of a sharp move such as today. The stock jumped 15.2% to INR 22.35 and closed at the upper end of the range which has been continuing since February 2023.
Image Description: Daily chart of McLeod Russel India with volume bars at the bottom
Image Source: Investing.com
However, looking closely, the stock broke above a short-term falling trendline resistance on the daily time frame, which is setting it up for an uptrend. As today, it ended the session at the highest level since mid-February 2023, the high momentum might take it further to the next level of INR 26. A stop loss below INR 18 seems sufficient to give enough room for the stock to move while curbing the risk at the same time.
Genesys International Corporation Limited
Genesys International Corporation Ltd (NS:) is primarily engaged in the business of providing IT consultancy, having a market capitalization of INR 1,115 crore. The stock had fallen continually since it topped out in July 2022 and didn’t give many chances to investors to make an exit. However, on the contrary, the stock has now formed a bullish divergence around the 52-week lows which is a trend reversal signal.
Image Description: Daily chart of Genesys International Corporation with the RSI at the bottom
Image Source: Investing.com
It indicates a potential bullish move and therefore, mean reversion traders might be interested in hunting long opportunities here. Today, the stock surged 11.2% to INR 328.4 and broke a short-term falling trendline, which is another trend reversal signal. As long as the stock does not break the previous low of INR 266, the downtrend should be deemed to be over. On the upside, a level of INR 370 can be there on the screen in the next few weeks.
Read More: Breakout: Stock Jumps Out of Downward Channel with 4% Gain!
