Riding on a two-day rally, the market reached the crucial resistance area of 19,200-19,300, which played the role of a key support zone earlier in August. Hence, if the Nifty50 decisively closes above these levels, then the move towards 19,500-19,600 is likely in the coming days, with crucial support at the 19,000 mark, experts said.
On November 3, the Nifty50 jumped 97 points to 19,231 and formed the Spinning Top kind of candlestick pattern on the daily charts, indicating indecisiveness among buyers and sellers about the future trend. The index continued to make higher highs, higher lows formation for yet another session.
The BSE Sensex jumped 283 points to 64,364, while the market breadth was positive as about two shares advanced for every falling share on the NSE. The Nifty Midcap 100 and Smallcap 100 indices gained 0.7 percent and 1.2 percent.
Stocks that performed better than broader markets included Amber Enterprises, L&T Finance Holdings, and Godrej Properties. Amber Enterprises has decisively broken the falling resistance trendline adjoining highs of September 7 and October 20, and formed strong bullish candlestick pattern on the daily charts with above average volumes. The stock rose 6.7 percent to Rs 3,117 on the NSE.
L&T Finance Holdings has also seen a breakout of horizontal resistance trendline adjoining highs of July 3 and October 23, and formed healthy bullish candlestick pattern on the daily timeframe with strong volumes. The stock traded above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average), which is positive sign. The stock rallied nearly 5 percent to Rs 140.85.
Godrej Properties, too, saw breakout of slightly downward sloping resistance trendline adjoining highs of July 28 and October 11, and formed long bullish candlestick pattern on the daily scale with robust volumes. The stock jumped 4 percent to Rs 1,784 and traded well above all key moving averages.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
On the daily time frame, the stock is in a strong uptrend following a series of higher tops and bottoms formation. As the stock is well placed and sustaining above its 20, 50, 100 and 200-day SMA (simple moving average) which reconfirms bullish sentiments.
With Friday's strong gains, the stock has confirmed "consolidation range" (Rs 3,100-2,750) breakout on a closing basis. This breakout is also accompanied with a huge volume spurt which signals increased participation.
The daily "Bollinger band" buy signal suggests increased momentum on the short term chart. The daily, weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 3,350-3,500, with downside support zone of Rs 3,000-2,920 levels.
With post 4 months strong consolidation, the stock has experienced high volume buying momentum in Friday's session. The stock has registered 4% gains and has also decisively broken out its "multiple resistance zone" of Rs 138 on a closing basis.
With recent price correction, the stock has recaptured its 20, 50, 100-day SMA and rebounded very sharply indicating strong comeback of bulls. The stock is in strong uptrend across all the time frame forming a series of higher tops and bottoms formation. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 160-180, with downside support zone of Rs 135-128 levels.
With Friday's rally, the stock has confirmed "consolidation breakout" (Rs 1,760-1,500) at Rs 1,760 levels on a closing basis which signals increased participation in the rally.
The stock is well sustained above its 20, 50, 100 and 200-day and these averages are also inching up along with prices which confirms bullish sentiments. The weekly "Bollinger band" buy signal suggests increased momentum on the short term chart.
The daily, weekly and monthly strength indicator RSI is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,900-2,050, with downside support zone of Rs 1,700-1,660 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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