The southward journey continued in the equity markets on April 19, with the BSE Sensex falling nearly 900 points in three straight sessions. Technology stocks pulled the markets down, followed by selling pressure in select banks and FMCG stocks.
The BSE Sensex dropped 159 points to 59,568, while the Nifty50 declined 41 points to 17,619 and formed a bearish candlestick pattern on the daily timeframe with small upper and lower wicks, indicating rangebound and volatile trade.
The broader markets also dipped but the fall was less compared to the benchmarks. The Nifty Midcap 100 and Smallcap 100 indices slipped one-tenth of a percent each, after snapping seven-day and elevan-day winning streak respectively.
Stocks that showed strong performance and traded among the top 10 gainers in the Nifty500 index, included Greenpanel Industries. It was the second biggest gainer in the index, surging 14 percent to Rs 312.5, the highest closing level since January 31 this year. The stock has formed large bullish candlestick pattern on the daily charts with significantly higher volumes and also there was an expansion of Bollinger band on both sides.
Prism Johnson was also in action, climbing more than 11 percent to Rs 129.1, which is similar closing of December 1 last year. The stock has seen formation of robust bullish candle on the daily scale with robust volumes, and with this smart rally, also there was Bollinger band expansion on both sides.
Amara Raja Batteries shares gained 4 percent to close at Rs 613 and formed long bullish candle on the daily timeframe, continuing uptrend and higher highs higher lows formation for third straight session. The stock firmly traded above all key moving averages (21, 50, 100 and 200-day EMA - exponential moving average).
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
After registering the top of Rs 625 on April 28, 2022, the said counter has been making lower top lower bottom structures which resulted in a 59 percent cut in price.
At the current juncture, it has made a bullish divergence on a daily scale of KST (Know Sure Thing) along with Bullish Bat pattern (refer to the chart) which is looking for lucrative buy.
One can buy in small tranches around Rs 300-310 and another around Rs 280-290, with target of Rs 375 and the stop-loss would be Rs 275.
Though Amara Raja Batteries has seen massive buying in its previous session, one needs to be alert as it is approaching its historical resistance zone of Rs 620-625.
One can book profit between mentioned resistance zone. Additionally, one can wait for pullback till Rs 595-600 levels. As of now wait and watch.
At present the said counter has tested its downward sloping trendline and yet to be taken out. Additionally, the stock has already given 28 percent return from its lower level of Rs 100 which was tested on March 20, 2023.
On indicator front, its daily MACD (moving average convergence divergence) is overstretched thus hinting towards possible pull back till Rs 120 levels. Thus, one can book profits in the range of Rs 127-130 levels.
Fresh buy is not advised at current market price.
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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