The market failed to extend gains on June 8 as traders seem to have preferred taking profit off the table after the repo rate kept unchanged at 6.5 percent by the Monetary Policy Committee. The benchmark indices reported consistent uptrend in previous four straight sessions.
The BSE Sensex dropped 294 points to 62,849, and the Nifty50 slipped 92 points to 18,635, while the broader markets also corrected after consistent northward journey of several sessions as the Nifty Midcap 100 index declined half a percent, and Smallcap 100 index plummeted nearly 1 percent.
We have seen correction in most of sectors, barring metal. IT and Pharma fell more than 1 percent each.
Stocks that outperformed broader markets included JBM Auto which spiked 7.5 percent to end at record closing high of Rs 941, in addition to 9 percent rally in previous session. The stock has formed strong bullish candlestick pattern on the daily charts for yet another session, with robust volumes. It has been in an uptrend since the mid of December 2022, with broadly making higher highs, higher lows formation.
HEG shares climbed 4.6 percent to Rs 1,365, the highest closing level since April 11, 2022 and formed healthy bullish candlestick pattern on the daily scale with strong volumes. The stock has seen nice breakout after three-day consolidation. The stock turned strong since May 31, especially after the golden crossover with 50-day EMA (exponential moving average) crossing 200-day EMA on the higher side.
JSW Steel has given a nice breakout of recent consolidation in previous session with 2.4 percent rally and continued uptrend on Thursday too, with 2.6 percent gains to close at Rs 749, the highest closing level since January 19, 2023. The stock has formed bullish candlestick pattern on the daily charts, with healthy volumes.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
After short-term correction from the higher levels, the counter was in the accumulation zone where it was trading in a rectangle formation.
However, on the daily charts there is a range breakout in the counter along with decent volume activity, which suggest a new leg of bullish trend in the near term.
Unless it is trading below Rs 720, positional traders can retain an optimistic stance and look for a target of Rs 800.
On last Thursday, the stock rallied 7.5 percent. Despite tepid market conditions, the stock held the positive momentum throughout the day. On daily and weekly charts, it has formed promising price volume breakout formation.
It also formed long bullish candle on daily and weekly charts, which indicates continuation of uptrend in the near future.
For the breakout traders now, Rs 910 would be the key level to watch out; above the same, the stock could move up to Rs 1,010.
On the other side, below Rs 910, traders may prefer to exit from the trading long positions.
The counter is trading into a rising channel pattern after reversal from the support zone and forming the higher lows series. The strong bullish momentum on weekly scale suggest that the counter is likely to maintain bullish continuation chart formation in the coming horizon.
For traders, Rs 1,310 would act as an important support zone, while Rs 1,450 could be the key resistance area for the short-term traders. However, below Rs 1,310 level, the uptrend would be vulnerable.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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