OFSS, IRFC zoom up to 70% so far in 2024! Charts show more legs in rally

As many as 274 out of the Nifty 500 stocks held gains as of Jan 19, even as the benchmark BSE Sensex was down 2 per cent for the new year. Here's what charts suggest for select early movers of 2024.

It’s been just 14 trading sessions so far in the new year, and the markets have already witnessed a significant volatile ride, with benchmark indices scaling new peaks and then registering their biggest single-day fall in 18 months.

The S&P BSE Sensex has swung nearly 4 per cent so far in this period, from a new all-time high of 73,428 to a low of 70,666, and is down around 2 per cent. The on and off bets on US Fed rate cuts in March, geopolitical worries, higher valuations back home and Q3 earnings are seen as the triggers for the market volatility.

In spite of this, a majority i.e. 274 out of the Nifty 500 were seen holding net gains for the year as of January 18. With as many as 70 shares, up over 10 per cent each, and 10 up over 30 per cent so far.

Oracle Financial Services Software (OFSS) has been the top mover, with a gain of over 55 per cent as of Thursday. Sobha, IRFC, Alok Industries and Network 18 were up 45 - 50 per cent.

Against this background, here's a quick chart check on select early movers of the year 2024.

OFSS

Current Price: Rs 6,820

Support: Rs 6,500; Rs 5,700; Rs 5,450

With today's gain, OFSS is up over 70 per cent so far in 2024. The stock has rallied over 40 per cent in just the last two trading sessions on the back of strong Q3 performance. 

Given the sharp rally, the stock is trading with a bullish bias across time-frames, with daily chart suggesting that that the bias is likely to remain positive as long as the stock holds Rs 6,500-level. 

The bullish pivot as per the weekly and monthly chart stands at Rs 5,700 and Rs 5,450 levels. These can be considered as potential entry points as and when the stock takes a breather. CLICK HERE FOR THE CHART

Sobha

Current Price: Rs 1,455

Support: Rs 1,370

Upside Potential: 14%

Sobha too extended its rally, and was up almost 58 per cent at the high point of the day so far. Overall, the stock has witnessed a stupendous rally so far in the financial year 2023-24, up a whopping 261 per cent.

The stock trades in fairly overbought zone, hence one need to be cautious at the counter. Further, select momentum oscillators on the daily scale are showing some signs of divergence, while that on the weekly chart remain clearly in favour of the bulls. 

This suggests, a possibility of the stock displaying some more strength in the near-term before any meaning correction setting-in. The medium-term chart suggests that the bias is likely to remain favourable as long as Rs 1,365 is protected on a weekly closing basis. On the upside, the stock could target Rs 1,660. CLICK HERE FOR THE CHART

IRFC

Current Price: Rs 157

Upside Potential: 15%

Support: Rs 150; Rs 120

Shares of IRFC have been trading with a bullish bias for the last six months. The long-term chart suggests that the bias is likely to remain favourable as long as the stock trades above Rs 120-level. 

Near support for the stock is seen at Rs 150. On the upside, the stock can rally to Rs 180. CLICK HERE FOR THE CHART

Rail Vikas Nigam (RVNL)

Current Price: Rs 274

Upside Potential: 19%

Support: Rs 230

RVNL seems to have picked up fresh upward momentum. The bias for the stock is likely to remain bullish as long as it trades above Rs 230 level. On the upside, the stock can potentially rally to Rs 325. CLICK HERE FOR THE CHART