The market has seen some correction on the last day of the week, August 25, but has taken a support at 19,200-19,250 area on the Nifty, which formed inverted hammer kind of pattern on the weekly charts after consistent correction since last week of July. Hence, there can be a possibility of rebound in the the coming sessions, which can face resistance at 19,300-19,400 levels but, in case the index goes past the support level, then the correction can be seen up to the 19,100-19,000 levels, experts said.
The Nifty50 fell 121 points to 19,266, and the BSE Sensex dropped 366 points to 64,886, while the Nifty Midcap 100 and Smallcap 100 indices declined 0.8 percent and 0.4 percent.
We have seen correction in key sectors as well. The Nifty Bank declined 265 points to 44,231, while the Nifty IT index slipped 198 points to 30,914 and formed a Doji kind of pattern on the daily charts for yet another session, indicating indecisiveness among buyers and sellers about future trend.
Stocks that bucked the trend included Indiabulls Housing Finance, Sun TV Network, and Indiabulls Real Estate. Indiabulls Housing Finance rallied nearly 9 percent to Rs 172.95, the level which we have seen for the first time since April 11, 2022, and formed a bullish candlestick pattern with long lower shadow on the daily charts, indicating buying at lower levels. Further, we have seen a significant increase in trading volumes for the counter.
Sun TV Network continued its uptrend with big volumes for third consecutive session, rising 3.7 percent to Rs 604, the highest closing level since November 4, 2021. The stock has formed long, bullish candlestick pattern on the daily timeframe, trading above all key moving averages.
Indiabulls Real Estate has seen a breakout of downward sloping resistance trendline adjoining high of May 2 and August 2. The stock gained 3.3 percent to close at Rs 71.55, continuing the uptrend with significantly higher volumes for second consecutive session, with getting back above the 200-day EMA (exponential moving average placed at Rs 68.4).
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Since May 2023, the stock has been consolidating within the "Symmetrical Triangle" representing strong consolidation. With Friday's strong gains, the stock has confirmed a pattern breakout at Rs 70 levels along with huge volumes indicating increased participation.
The stock is well placed and sustained above its 20, 50, 100 and 200-day SMA (simple moving average) which reconfirms bullish sentiments. The daily, weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which shows rising strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 80-85, with a downside support zone of Rs 66-62 levels.
On the weekly chart, the stock has confirmed "Double Bottom" formation at Rs 159 on a weekly closing basis indicating trend reversal on medium-term charts. Huge volumes since the past one month signify increased participation.
Recent price action was observed at the 20-day SMA (Rs 158) support zone which remains a crucial support zone. The weekly "Bollinger band" buy signals suggest increased momentum.
The stock is trending up forming a series of higher tops and bottoms formation indicating a bullish trend. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows rising strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 190-200 with a downside support zone of Rs 160-150 levels.
With the last week's strong gains of 10 percent, the stock has decisively broken out of its "multiple resistance" zone at Rs 565 levels on a weekly closing basis. This breakout is accompanied by huge volumes indicating increased participation.
The stock has recaptured its 20-day SMA (simple moving average) and rebounded sharply indicating positive bias. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows rising strength across all the time frames.
The daily and weekly "Bollinger band" buy signal indicates increased momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 650-700 with a downside support zone of Rs 580-570 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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