Given the strong action in the bear camp, the market is likely to continue its downward move in the coming sessions too, along with consolidation. The Nifty 50 is expected to move closer to 50-day EMA (exponential moving average placed at 22,100) on the downside as breaking of the same can drag it towards the 22,000 level, while on the higher side, 22,400 is an immediate resistance for the index, experts said.
On April 15, the benchmark indices lost more than 1 percent for yet another session, after gap-down openings. The BSE Sensex plunged 845 points to 73,400, while the Nifty 50 plummeted 247 points to 22,273 and formed a bearish candlestick pattern with upper shadow on the daily charts.
The broader markets were also under pressure with the Nifty Midcap 100 and Smallcap 100 indices declining 1.6 percent and 1.7 percent.
Stocks that outperformed the market and moved northward on Monday included CSB Bank, Aegis Logistics, and Exide Industries. CSB Bank rallied 6 percent to Rs 411 and is now very close to its record high of Rs 422 hit last December 29. The stock has formed a bullish candlestick pattern on the daily charts with significantly higher volumes, while the stock traded above all key moving averages.
Aegis Logistics extended the upward journey for the fourth consecutive session, rising 1.5 percent to Rs 487.5 and formed a bullish candlestick pattern with upper and lower shadow on the daily timeframe, indicating volatility in the counter. The stock traded above all key moving averages with above average volumes.
Exide Industries hit a new closing high of Rs 409 on the NSE, up 2.7 percent, and formed a bullish candlestick pattern with long upper shadow on the daily charts, indicating some kind of profit-taking at highs. The stock traded with strong volumes and remained above all key moving averages.
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
Prices have finally broken out of an important price action area that was close to Rs 400 level. On the below chart, prices bounced back on the upside precisely by taking support of the Ichimoku cloud.
Additionally, ADX (average directional index) is suggesting strong momentum which is probably going to continue because it is currently trading above 25 levels at 28. There was sharp increase in volumes. All signs are suggesting that bullish momentum is likely to continue in this stock.
In short, CSB Bank looks bullish. Use dips towards Rs 404 as a buying opportunity with the target of Rs 425. While on the downside, Rs 394 is the key support level.
Exide Industries is inching higher day by day. On the daily chart, we can see that recently prices have given a breakout of the channel. Also, since April 8, 2024 every candle has given a close above upper end of the Bollinger bands, suggesting strength in current trend.
The RSI (relative strength index) is in overbought territory, so possibility of profit booking cannot be ruled out. One can use dips as an opportunity to create fresh longs as overall trend is positive.
In short, trend for Exide Industries is positive. Use dips as a buying opportunity for a move towards Rs 430 level as long as Rs 391 holds on the downside.
After giving a break above previous swing high which was near Rs 471 levels, prices managed to sustain above it which is a positive sign.
The stock is moving well within an upward sloping channel. In coming sessions, we can expect a move towards the channel resistance which is near Rs 520 levels.
On the daily chart, KST (know sure thing) is trading above zero line after a crossover which indicates that good momentum is likely to continue.
In short, trend for Aegis Logistics is positive. We can expect a rise towards Rs 505, followed by Rs 520 level, as long as Rs 471 holds on the downside.
Follow Ashish Kyal on Twitter - @kyalashish
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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