With continuation of an upward journey and strongly holding the psychological 20,000 mark, expects expect the Nifty50 to surpass its previous record high of 20,222 (September 15) in the coming days. The recovery from the day's low on the monthly F&O expiry day and making higher highs, higher lows formation for three days in a row with robust volumes also supported sentiment.
On November 30, the Nifty50 climbed 37 points to 20,133, and the Nifty50 rose 87 points to 66,988, while the Nifty Midcap 100 index jumped 0.7 percent and Smallcap 100 index was up 1.1 percent despite equal breadth.
Stocks that performed better than the broader markets on last day of November series included Poonawalla Fincorp, GAIL India, and Avenue Supermarts. Poonawalla Fincorp has decisively broken out the downward sloping resistance trendline and formed robust bullish candlestick pattern on the daily charts with significantly higher volumes. The stock rose 6.4 percent to Rs 409 and traded well above key moving averages (20, 50, 100 and 200-day EMA - exponential moving average), which is a positive sign.
GAIL India has also seen a breakout of falling resistance trendline and climbed 4.8 percent to end at record closing high of Rs 132. The stock has formed strong bullish candlestick pattern on the daily charts with robust volumes and traded above all key moving averages.
Avenue Supermarts, too, saw a breakout of horizontal resistance trendline and formed long bullish candlestick pattern with long lower shadow on the daily scale, indicating buying at lower levels. The stock rose 2.3 percent to Rs 3,950 with above average volumes and traded above all key moving averages for almost three weeks now.
Here's what Foram Chheda of ChartAnalytics recommends investors should do with these stocks when the market resumes trading today:
Following a minor Double Top formation in August, Poonawalla exhibited a corrective decline within a descending channel. Finding support around the 200-day moving average (MA) at Rs 343-344 levels, it established a foundation. Post-stabilization near the 200-day MA, the stock rebounded, forming a higher bottom.
Recently, it broke out from the descending channel, accompanied by increased volume, indicating bullish momentum. It is advisable to maintain the current holdings, anticipating a higher target near Rs 440. Expect some consolidation; for new buying opportunities, consider levels around Rs 394-395. The technical analysis supports a positive outlook for the stock.
Following a peak around Rs 132, GAIL India’s stock experienced a corrective downturn, finding support near the 100-day MA at Rs 116 levels before initiating a rebound. During the upward movement, it surpassed the 50-day MA, signaling a bullish near-term trend aligned.
The breakout in price, coupled with increased volume, substantiates the bullish sentiment. The stock's formation of higher tops and bottoms, along with the breakout from the price pattern, suggests a positive outlook.
Holding the stock is recommended, anticipating an upward trajectory towards Rs 142 levels, while maintaining a trailing stop-loss at Rs 128. After a month of consolidation, the stock successfully broke out from the symmetrical triangle pattern.
After a corrective downturn from June's peak at Rs 4,150 levels, Avenue Supermarts stock stabilized around Rs 3,500 levels in August. A subsequent rebound formed higher tops and bottoms, shaping a symmetrical triangle. Advancing, the stock surpassed key moving averages—50-day, 100-day, and 200-day MA—indicating a bullish underlying trend.
This week, a breakout from the symmetrical triangle presents favourable buying opportunities. The surge in volume substantiates and confirms the breakout, while the PSAR (parabolic stop and reverse) remains in a buy mode.
Consider initiating a buy position at Rs 3,940 levels, maintaining a stop-loss at Rs 3,840, with an anticipated potential uptrend of approximately 4.5 percent in the near term.
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