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It was a power packed session on Dalal Street. Expectations of a Fed rate cut boosted investor sentiment and the Nifty and the Sensex surged to new all time highs. Nifty closed at 6,097 up a whopping 137 points, while the Sensex shut shop at 20,291 up 360 points.

Technical Analyst Rajat Bose of rajatkbose.com is positive on Bharti and ONGC.

Here’s how Rajat Bose views the stocks on board:

On Bharti:
Bharti has actually posted a breakout. It has been consolidating between Rs 950 and Rs 850 for quite a while. Today, it has given that breakout and Rs 1,040 is a very crucial level for this stock. Once it stays above that decisively, than you can expect it to move up to Rs 1,100. It can even go beyond that, if the momentum is sustained.

On ONGC:
ONGC has a very good move today. Generally, for ONGC, this kind of a move of 3-4% in a day is not carried forward. But overall, the ONGC chart pattern suggests that if we get past Rs 1,260, then Rs 1,300 levels and above would be seen in the short-term. That augurs well for the Nifty, because they are heavy weights for the index.

On MTNL:
It is posting a breakout. Such kind of big moves, either in ONGC or MTNL, is actually not sustained. So, we need to see whether MTNL really stays above Rs 190, at atleast in the next couple of trading sessions. But around these levels of between Rs 200 and Rs 210, one might actually see some kind of selling pressure coming in.

There could be some amount of short covering and that is happening in MTNL for some reason. IT does not look like a delivery-based buying here at this juncture. Generally, when delivery-based buying happens in MTNL, it is actually a very slow mover and we need to see how it pans out.

On heavyweights:
ONGC and Bharti are both rising from much lower levels. Another heavyweight that looks a little weak is Reliance. If Reliance manages to bulk up strength, then it would be very good for the index.

But Bharti, as of now, is showing maximum strength. ONGC, above Rs 1,260, would also show considerable strength. Above Rs 745 Reliance Communications would also be showing considerable strength.

On Centurion Bank:
I hold positions in Centurion Bank. The stock has moved up very sharply in the last three trading sessions. From the kind of movement, that you have seen around Rs 62 levels, some profit booking was warranted. It has happened and it has come down.

But overall, the trend continues to remain up. Long-term and medium-term trends are up. The short-term trend is a bit vertical. So, it requires some consolidation. But overall chart patterns suggest that Rs 72 would be the next target.

Disclosures:
It is safe to assume that my clients and I have an interest in the stocks/sectors discussed.