The market seems to be going strong, despite some corrections on December 12 after a bit of consolidation. It holds 20,850 as a strong support despite corrections. The Nifty 50 may hover on 21,050-21,100 in the near term, as long as it trades above the support level. But, in case it breaks the support, then 20,700-20,500 is expected to be the crucial support area, experts said.
On December 12, the Nifty50 slipped 91 points to 20,906, while the BSE Sensex was down 378 points at 69,551. The market breadth was weak as about 1,371 shares declined against 758 rising shares on the NSE.
Stocks that outperformed the benchmark as well as broader markets included HDFC Life Insurance Company, JBM Auto, and BLS International Services. HDFC Life Insurance Company has seen a decisive breakout of long downward sloping resistance trendline adjoining highs of September 5, 2021 and December 1, 2023, and recorded more than 5 percent rally to Rs 707.35, the highest closing level since November 17, 2021. The stock has formed strong bullish candlestick pattern on the daily charts with healthy volumes, and traded well above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average) which is a positive sign.
JBM Auto has seen a breakout of horizontal resistance trendline in previous session with 5 percent rally and the same uptrend continued on Tuesday as well, with another 5 percent gains. The stock settled at Rs 1,411.55 and formed bullish candlestick pattern on the daily charts with above average volumes. Also, the stock traded above all key moving averages.
BLS International Services rallied 7 percent to end at record closing high of Rs 317, continuing strong uptrend for yet another session with robust volumes on both days. The stock has seen a breakout of downwad sloping resistance trendline in previous session. Further, the stock traded well above all key moving averages.
Here's what Omkar Patil of Ashika Group recommends investors should do with these stocks when the market resumes trading today:
HDFC Life exhibits robust momentum. Recently, the stock experienced a breakout from a six-month Rectangle Pattern, preceded by a pattern shortfall indicating strong market enthusiasm. The breakout, supported by substantial trading volumes, confirms its validity.
The MACD (moving average convergence divergence) above the Zero Line suggests a potential continuation of the upward trend.
Investors are advised to consider buying this stock, targeting a further move up to Rs 785, with a stop-loss at Rs 678 on a daily closing basis.
BLS International is on a noteworthy uptrend, maintaining its bullish structure even after a correction from its peak around Rs 301 levels. The correction did not breach the 50 percent Fibonacci Retracement level of the previous upmove from Rs 150 to Rs 301, reinforcing the stock's positive trajectory.
A recent breakout from the Cup & Handle pattern, accompanied by high volumes and a rising window, further supports the uptrend. Trading comfortably above short-term Moving Averages affirms the presence of a sustained uptrend.
Investors are encouraged to consider buying this stock, targeting a move up to Rs 360, with a stop-loss at Rs 304 on a daily closing basis.
JBM Auto has recently witnessed a breakout with significant volume after a consolidation period since August 2023. The stock's consolidation during this period, marked by subdued volumes, suggests a healthy correction within a primary uptrend. The MACD crossing above the zero line indicates positive momentum and built-up in the trend.
Investors are advised to consider buying this stock, targeting a move up to Rs 1,575, with a stop-loss at Rs 1,340 on a daily closing basis.
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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