After hitting a record high, the Nifty 50 remained in the 21,500-21,750 range through the last six trading sessions. The trend suggests that bears are pulling the index below 21,500, while bulls are pushing it beyond 21,750 and, if the bulls prove to be mightier, then 21,350-21,300 will be the levels to watch on the downside. There's no indication, however, of a significant correction unless any global reason emerges, experts said, adding that in case the index climbs above 21,750, a record high of 21,834 will be the initial hurdle.
On January 9, the benchmark indices closed off the day's high on the rush to book profit in last hour of trade. The Nifty 50 climbed 32 points to 21,545, and the BSE Sensex 31 points to 71,386, while the Nifty Midcap 100 and Smallcap 100 indices were up 0.2 percent and 0.4 percent.
Stocks that were among the biggest gainers in the Nifty 500 index included JSW Energy, FSN E-Commerce Ventures (Nykaa), and Godrej Properties. JSW Energy gained momentum after recent consolidation and jumped 8.4 percent to Rs 455. The stock has formed strong bullish candlestick pattern on the daily charts with robust volumes, and traded above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average), which is a positive sign.
Nykaa has seen a strong breakout after several weeks of consolidation and jumped 6 percent to Rs 187.5, the highest closing level since November 18, 2022. The stock has seen a formation of long bullish candlestick pattern on the daily charts with healthy volumes. In fact, the trading volumes remained high in last three trading sessions.
Godrej Properties climbed 3.7 percent to Rs 2,241 and formed long bullish candlestick pattern on the daily timeframe with above average volumes. The stock has almost recouped its previous day's losses and traded far 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:
The uptrend of JSW Energy is accelerating, evident from the increasing steepness of the trend. Notably, there has been a recent up surge in volumes, accompanied by prices finding support from an ascending trendline.
The positive crossover of the 12 and 26-day EMA (exponential moving average) indicate the initiation of an uptrend.
Anticipating further upward movement, the stock is expected to reach fresh life highs in the range of Rs 480-485. On the downside, a crucial support level is placed at Rs 440.
Godrej Properties is currently exhibiting strong momentum, evidenced by its trading at a 52-week high. The stock's position above its 12-day exponential moving average (EMA) confirms the presence of an uptrend. Additionally, there has been a recent increase in trading volumes.
The stock can move higher till Rs 2,440. On the downside, the key support level is placed at Rs 2,160.
The stock has successfully broken out of a consolidation zone, which was previously ranging from Rs 165 to Rs 185. The breakout was accompanied by a notable increase in trading volumes, indicating strong enthusiasm. The relative strength index (RSI) reading above 60 suggests the presence of positive momentum in the trend.
With this breakout, the stock could move higher, potentially reaching levels around Rs 205. On the downside, the key support level placed at Rs 180.
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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