The Indian market saw a reversal of gains from its record high and closed lower on July 7, in sync with weak trading in Asian counterparts amid the possibility of rate hike by the Federal Reserve in its July policy meeting. Most key sectors, barring auto, were under pressure.
The BSE Sensex lost more than 500 points to 65,280, and the Nifty50 shed 166 points to 19,332, while the broader markets also followed suit, with the Nifty Midcap 100 and Smallcap 100 indices declining 0.8 percent and 0.4 percent respectively.
The Bank Nifty closed below 45,000, down over 400 points to 44,925, while the Nifty IT struggled a lot for third time to surpass 30,000 mark but failed, declining more than 240 points to close at 29,560.
Stocks that outperformed broader as well as benchmarks included Sunteck Realty, Jamna Auto Industries, and Olectra Greentech. Sunteck Realty was the second biggest gainer in the Nifty50, rising 12 percent to Rs 335 and formed robust bullish candlestick pattern on the daily charts with significantly higher volumes. The stock has seen a breakout of downward sloping resistance trendline adjoining highs of January 24 and May 15 in previous session, which is a positive sign.
Jamna Auto Industries continued its uptrend for yet another session, rising 3 percent to Rs 112 and formed yet another strong bullish candlestick pattern on the daily scale with above average volumes. The stock has given a nice breakout of downward sloping resistance trendline in previous session, which resulted into continuation of uptrend on Friday as well.
Olectra Greentech was the top gainer in the Nifty500, climbing 18 percent to end at record closing high of Rs 1,232 and formed robust bullish candlestick pattern on the daily timeframe, with strong volumes. The stock has made higher highs, higher lows formation for second consecutive session.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
The stock has experienced a significant trend reversal on the short-term charts, with a notable gain of 19 percent last week. This surge in price has led the stock to surpass the swing high of Rs 320 from May 12, 2023, on a weekly closing basis. This breakout confirms the strong comeback of the bulls in the market.
The buying momentum is further supported by high trading volumes, indicating increased participation at lower levels. Additionally, the stock price is comfortably positioned above its 20, 50, and 100-day simple moving averages (SMA), reaffirming the bullish trend.
The breakout from a "down-sloping" trendline on the weekly time frame, observed at Rs 294 levels, further signals a shift in the trend towards the upside.
Furthermore, both the daily and weekly strength indicators, such as the relative strength index (RSI), are in positive terrain. This indicates rising strength and supports the bullish outlook for the stock.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 370-385 with downside support zone of Rs 320-300 levels.
The recent price momentum and gains in the stock have led to a significant development: the confirmation of a one-year "down-sloping" trendline breakout at Rs 105 levels on a closing basis. This breakout indicates a notable trend reversal, suggesting a shift from a downtrend to a potential uptrend.
Furthermore, the past three weeks have seen a substantial increase in volumes, which signifies heightened participation at the breakout zones. This influx of buying interest further supports the bullish sentiment surrounding the stock.
Moreover, the stock has successfully recaptured its 20, 50, and 100-day simple moving averages (SMA), positioning itself above these key averages . This reaffirms the bullish sentiment and strengthens the case for a potential uptrend.
Additionally, both the daily and weekly "Bollinger Bands" have generated a buy signal, indicating rising momentum in the stock. This further supports the bullish outlook.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 120-125 with downside support zone of Rs 108-104 levels.
The stock is indeed exhibiting a strong uptrend, characterized by a series of higher tops and bottoms across all time frames. This pattern indicates a sustained upward movement in the stock's price.
Furthermore, with the current week's gain, the stock has decisively surpassed its previous high of Rs 941 on a closing basis indicating a strong breakout. The fact that this breakout was accompanied by significant trading volumes indicates a notable buying interest in the stock.
In addition, the daily, weekly, and monthly strength indicator RSI is in bullish terrain. This confirms the rising strength in the stock and supports the overall bullish sentiment.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,330-1,450 with downside support zone of Rs 1,040-1,010 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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