RIL, Hindustan Unilever: Stocks that helped Sensex hit record high

HUL has seen a strong selling pressure above Rs 1,850 levels before breaking out after the government cut corporation tax.

The S&P BSE Sensex reached a record high of 40,483 on Monday, signalling upbeat investor sentiment. During the course, several stocks hit a fresh 52-week high, suggesting bulls could be gearing up for the next leg of rally. Among the S&P BSE Sensex constituents, most stocks have shown a positive trend. However, only a handful have played a significant role in lifting the index to record high.

Though Bajaj Finserv, Bajaj Finance, HDFC Bank, ICICI Bank, and Asian Paints did participate in this rally, but stocks such as Bajaj Auto, Bharat Petroleum Corporation (BPCL), Hindustan Unilever (HUL) and Reliance Industries (RIL) have contributed the most to the index's upswing.

Here's how the frontline stocks look on the charts.

S&P BSE SENSEX: The ‘Flag Pattern’ breakout has resulted in a new lifetime high. Every up move above 39,500 has seen addition in longs with a gradual rise in volume. A ‘Golden Cross’ of 50-day moving average (DMA) with 200-DMA has kept the momentum high, daily chart pattern reveals. Relative Strength Index (RSI) is in the overbought zone, while Moving Average Convergence Divergence (MACD) is trading with positive crossover. CLICK TO VIEW CHART

Reliance Industries (RELIANCE): A ‘higher high, higher lows’ formation on the charts has helped this counter to outperform the market. The daily chart also presents a ‘Golden Cross’ of 50-DMA with 200-DMA. Volumes remained stagnant though the price has trended up over the past few weeks. From a medium-term perspective, 100-weekly moving average (WMA) has always remained a relevant support. CLICK TO VIEW CHART

Hindustan Unilever (HINDUNILVR): The counter has seen a strong selling pressure above Rs 1,850 levels before breaking out after the government cut corporation tax. As it did so, aggressive buying resumed, which sent the stock 15 per cent higher. The stock has been on an up move on average volume with the RSI trading in the overbought region, as per the daily chart. CLICK TO VIEW CHART

Bajaj Auto Ltd (BAJAJA-AUTO): Constant selling pressure above Rs 3,000 led to a correction in June, July 2019. This resulted in a breach of its 200-DMA, which further worsened the price scenario. Later in August and September, the counter saw a pull back and struggled to cross its 200-DMA. During this period, the scrip added “above average volumes” almost every day. This helped it to surpass the resistance level, which was placed at 200-DMA. It did resist making a move beyond Rs 3,000 again, but the positive crossovers of moving averages supported the upside. Bajaj Auto is five per cent shy from its all-time high of Rs 3,378. CLICK TO VIEW CHART

Bharat Petroleum Corporation (BPCL): The counter has a history of gaining ground whenever the MACD moves above the zero line on a weekly scale. Over the past few weeks, the stock has gained around 30 per cent. The daily chart is showing a gap-down close that was filled with high volumes and was a sign of strong buying momentum. CLICK TO VIEW CHART