The market seems to have entered a consolidation phase after hitting the top. Hence, a minor weakness with immediate support at 22,200 can't be ruled out, experts said, adding that 22,000 and 21,850 are expected to be key support areas, with hurdle for the Nifty 50 on the higher side at 22,500, and then at 22,600.
On March 5, the benchmark indices corrected for the first time in the last five sessions with the BSE Sensex ending down 195 points at 73,677 and the Nifty 50 shedding 49 points to 22,356, forming a small red candle with upper and lower shadows which resembled the Doji kind of candlestick pattern - and not an identical one - on the daily timeframe, indicating a tug-of-war between the bulls and the bears.
The Nifty Midcap 100 and Smallcap 100 indices also corrected, losing 0.3 percent and 1.2 percent.
Stocks that outperformed the broader markets on Tuesday included Bharti Airtel, Balaji Amines and Solar Industries. Bharti Airtel has seen a breakout of horizontal resistance trendline adjoining highs of February 5 and 21, and formed a long bullish candlestick pattern on the daily charts with average volumes. The stock climbed over 3 percent to Rs 1,169 and traded above all key moving averages.
Balaji Amines also saw decisive breakout of downward sloping resistance trendline adjoining multiple touchpoints, and formed robust bullish candlestick pattern on the daily charts with significantly higher volumes. The stock surged 9 percent to Rs 2,394 and traded above all key moving averages with sharp rally.
Solar Industries reached closer to its record high and clocked around a 6.4 percent rally for yet another session, forming a strong bullish candlestick pattern on the daily charts on both the days. The stock closed at Rs 7,760 and traded well above all key moving averages.
Riyank Arora | Technical Analyst at Mehta equities Ltd
Here's what Riyank Arora of Mehta Equities recommends investors should do with these stocks when the market resumes trading today:
The stock is giving a breakout from its falling wedge pattern and showing overall good signs of momentum and strength. With the overall trend being positive and a sharp volume pick-up in the counter, it is expected that the stock should head higher towards potential targets of Rs 1,190 and Rs 1,200 with a strict stop- loss at Rs 1,140 mark.
The stock has given a good breakout above its recent swing high mark of 2345. Volume in Tuesday's session was nearly 14 times its average 30-day volume.
The next resistance, as per technicals, is now placed at Rs 2,490 mark above which upside would open towards Rs 2,689. A strict stop-loss should be kept at Rs 2,300 for all active longs on the stock.
The stock is approaching a crucial breakout mark of Rs 7,832.90 on its daily as well as weekly charts. Any move above Rs 7,835 should trigger a major upside move in the stock towards Rs 8,000 and Rs 8,200 levels.
A strong support is placed at Rs 7,400 mark, below which the stock would lose its strength, so a stop-loss can be kept at the same.
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