Though the market rebounded sharply after the recent downturn, overall it is expected to remain volatile ahead of the FOMC meet outcome and the Union Budget 2024 this week. Hence, 21,300 is expected to be a key support area for the Nifty 50, followed by the low of January 21,140, whereas on the higher side, 21,700 is likely to be an immediate resistance area, followed by the 21,800 mark, experts said.
On January 30, the Nifty 50 dropped 216 points to 21,522, and formed a 'bearish dark cloud cover' pattern on the daily charts, while the BSE Sensex was down 802 points at 71,140. The broader markets had a mixed trend as the Nifty Midcap 100 index was down 0.4 percent and Smallcap 100 index gained 0.2 percent.
Stocks that outperformed the benchmark indices as well as broader markets included LIC Housing Finance, BEML, and KFin Technologies. LIC Housing Finance rallied nearly 3 percent to Rs 617, the highest closing level since October 30, 2017, and formed bullish candlestick pattern with upper shadow on the daily charts. In fact, the stock gained strength for yet another session after recent consolidation and continued higher highs, higher lows formation, while trading above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average).
BEML gained solid strength after several day of consolidation, in fact, there was a decisive consolidation breakout. The stock jumped 10 percent to end at record closing high of Rs 326 and formed strong bullish candlestick pattern on the daily timeframe with healthy volumes, while trading above all key moving averages.
KFin Technologies also ended at new closing high of Rs 600, up 7.2 percent and formed healthy bullish candlestick pattern on the daily charts with above average volumes. The stock continued uptrend for yet another session and traded 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:
Currently, the stock trades at a 6-year high, which reflects a strong and sustained uptrend. The stock’s trend can be seen while accelerating, as the steepness of angle is rising.
The recent upmove is supported by higher volume, which highlights the enthusiasm in the current trend. The stock has the potential to rise till Rs 675, while the support is seen at Rs 595 on the downside.
The stock is exhibiting a strong uptrend marked by higher highs and higher lows. The upmove from the lower levels of Rs 2,000 has consistently found support on every dip at the 12-day EMA (exponential moving average). The recent breakout from a narrow consolidation indicates continuation of the prior uptrend.
With the recent upmove, the stock can rise till Rs 3,850, while the support is seen at Rs 3,400 on the downside.
The stock is moving within an ascending channel, which signifies that the overall uptrend remains intact. The RSI (relative strength index) is moving in sync with the prices, which indicates positive momentum in the trend. Additionally, the recent upmove was supported by the averages, which further confirms the continuation of the trend.
The stock has the potential to extend its upward movement till Rs 650 level, while support is seen at Rs 575 on the downside.
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