Given the optimism after a range breakout, the Nifty50 may try to hold on to 19,500 in the coming days amid a likely state of consolidation. If it succeeds, then 19,600-19,700 can't be ruled out, while 19,400-19,300 can be the key support area which coincides with 21 and 100-day EMA (exponential moving average), experts said.
On the Muhurat trading session on November12, the Nifty50 jumped 100 points to 19,526, and formed a bearish candlestick pattern with minor lower shadow on the daily charts, while the BSE Sensex climbed 355 points to 65,260. The Nifty Midcap 100 and Smallcap 100 indices continued their uptrend, rising 0.6 percent and 1.1 percent.
The BSE Sensex gained more than 2 percent and the Nifty50 rallied 2.5 percent, while the Nifty Midcap 100 index rallied 5.4 percent and Smallcap 100 index 6.85 percent.
Stocks that performed much better than broader markets this month included Sobha, JK Lakshmi Cement, and Granules India. Sobha surged 16.6 percent to Rs 831 in current month and formed robust bullish candlestick pattern on monthly charts, with making higher highs, higher lows formation for third consecutive month. The stock traded well above all key moving averages.
JK Lakshmi Cement moved very close to its record high now. The stock spiked 15 percent to Rs 789 and formed strong bullish candlestick pattern on the monthly timeframe with average volumes. The stock traded well above all key moving averages.
Granules India has formed healthy bullish candlestick pattern on the monthly scale and climbed 13 percent to Rs 368.5 on the NSE. The stock traded well above all key moving averages, though it has been consolidating between Rs 265-400 area since after hitting record high in December 2020.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
In the weekly time frame, the stock has confirmed "multiple resistance" breakout at Rs 785 levels on a closing basis. This signals a strong comeback of bulls. This breakout is accompanied with huge volumes indicating increased participation.
The stock is well placed and sustaining above its 20, 50, 100 and 200-day SMA (simple moving average) and these averages are also inching up along with rising prices which reconfirms bullish trend.
The daily, weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 920-1,000 with downside support zone of Rs 785-700 levels.
The weekly price action has confirmed "down-sloping channel" breakout at Rs 735 levels on a closing basis. Huge volumes on this breakout reconfirms increased participation. Recently the stock has recaptured its 20, 50, 100-day SMA and rebounded sharply which signals rising strength.
The weekly "Bollinger band" buy signal suggests increased momentum. On the daily and weekly time frame the stock is trending higher forming a series of higher tops and bottoms which signals bullish sentiments. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 885-970, with downside support zone of Rs 755-715 levels.
In the past couple of weeks, the stock has recaptured its 20 and 50-day SMA and rebounded very sharply indicating bullish sentiments. In addition to this , the stock is on the verge of breakout from its "rounding bottom" formation at Rs 375-380 levels.
The rising volumes reconfirm increased participation. The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish trend across all the time frames. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 400-430, with downside support zone of Rs 350-325 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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