It was yet another week of volatile and rangebound trade. The Nifty50 firmly held the 17,600 mark for the third consecutive session, closing 0.50 points down at 17,624 on Friday and formed a small bodied bearish candlestick pattern with long lower shadow and small upper shadow on the daily charts, but consistently taking support at long downward sloping resistance trendline as well as 200-day SMA (simple moving average 17,605).
The BSE Sensex rose 23 points to 59,655, while the Nifty Midcap 100 and Smallcap 100 indices fell 0.4 percent and 0.3 percent respectively.
Auto, metal, select banking & financial services stocks were under pressure, whereas FMCG and technology stocks witnessed buying interest.
Stocks that performed better than broader markets included Mahindra Holidays & Resorts India which jumped 3.5 percent to end at record closing high of Rs 301 and formed bullish candlestick pattern on the daily scale with significantly higher volumes. The stock traded above all key moving averages (21, 50, 100 and 200-day EMA - exponential moving average).
Chalet Hotels also traded above all key moving averages, rising nearly 1 percent to Rs 372 and formed bullish candle on the daily timeframe with long upper shadow. We have seen above average volume, with the stock making higher lows for sixth consecutive session.
Borosil Renewables has decisively seen Flag pattern breakout on April 20 with 7 percent rally, followed by another 4 percent upside on April 21. The stock on both days has formed long bullish candlestick pattern on the daily charts, getting back above 50 and 100-day EMA on closing basis and hitting 200-day EMA intraday on Friday.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Mahindra Holidays & Resorts India
On the daily and weekly time frame, the stock is in uptrend forming a series of higher tops and bottoms indicating bullish sentiments. On the weekly line chart, the stock has registered the highest closing indicating bullish sentiments.
Past couple of weeks rising volumes signifies the increased participation near the all-time high. The daily, weekly, monthly strength indicator RSI (relative strength index) is in positive terrain which signals rising strength across all the time frames.
The stock is also well placed above 50, 100 and 200-day SMA (simple moving average) and these averages are inching up along with rising prices which reconfirms bullish trend. The weekly Bollinger Band buy signals indicates increased momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 330-355, with downside support zone of Rs 285-280 levels.
The stock is in strong trend on medium and long term charts however on the short term chart, the prices are consolidating within "triangular" format and currently placed near the breakout zone of Rs 380 levels. This triangular consolidation is well placed above its 200-day SMA support zone (Rs 350) which reconfirms bullish sentiments.
Huge volumes near this breakout zone interprets increased participation. The daily, weekly, monthly strength indicator RSI is in positive terrain which signals rising strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 400-430, with downside support zone of Rs 355-350 levels.
On the weekly chart, the stock has decisively broken out its one year "downsloping" trendline resistance at Rs 476 levels along with huge volumes. This represents trend reversal on short to medium term charts.
The daily and weekly strength indicator RSI is in positive terrain which signals rising strength. The daily "Bollinger Band" buy signals indicates increased momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 540-570, with downside support zone of Rs 430 levels.
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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