The market ended a rangebound session on July 25 on a flat note after showing recovery through the last couple of sessions. The falling volatility to all-time closing low also supported the bulls. Metal, auto, oil & gas, and select pharma stocks gained, whereas FMCG, select technology and banks stocks were under pressure.
The BSE Sensex dropped 29 points to 66,356, while the Nifty50 gained 8 points to 19,681 and maintained its 10-day EMA (exponential moving average - 19,655) as a support for yet another session.
We have seen mixed trend in broader markets with the Nifty Midcap 100 rising 0.4 percent and Smallcap 100 index losing 0.11 percent.
The Bank Nifty went above the 46,000 mark but could not sustain and fell 78 points to close at 45,845, while the Nifty IT index remained below the 30,000 mark, declining 82 points to 29,761.
Stocks that outpaced the benchmark as well as broader markets included HEG, TVS Motor Company, and Thermax. HEG gained more than 4 percent to Rs 1,678, the highest closing level since January 20 last year and formed bullish candlestick pattern with long upper shadow on the daily charts. The stock has seen a breakout of small downward sloping resistance trendline, which is a positive sign.
TVS Motor Company has also seen a breakout of downward sloping resistance trendline adjoining highs of June 12 and July 24, with strong volumes. The stock has formed long bullish candlestick pattern on the daily charts after taking a support at 50-day EMA in previous session, and rallied nearly 6 percent to Rs 1,384.
We have also seen a healthy breakout of falling resistance trendline adjoining highs of May 18 and July 21 in Thermax, with significantly higher volumes. The stock has formed strong bullish candlestick pattern with long upper shadow on the daily charts and settled 7 percent higher at Rs 2,624.
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
TVS Motor is on a robust uptrend since the beginning of this year, displaying a series of higher highs and higher lows. Recently, the stock formed a base above the 21-day EMA, setting the stage for a significant consolidation breakout.
In yesterday's session, the stock surged by 6 percent on impressive volumes, confirming the breakout. As a result, investors are advised to maintain their positions in the stock as long as it remains above its previous swing low at Rs 1,280-level.
For traders, holding or considering additional positions is recommended on a follow-through above Rs 1,385-level. Setting a stop loss at Rs 1,340-level will help manage risk effectively while capitalizing on potential upside moves.
Overall, TVS Motor looks promising for both investors and traders given its positive price action and strong underlying trend.
The stock has undergone a prolonged consolidation phase for almost a year. In the recent trading session, a significant breakout occurred both in terms of price and time. This breakout is evident in the formation of a Cup and Handle pattern, typically considered an accumulation pattern.
Although the stock's liquidity is relatively low, the breakout was accompanied by robust volumes, indicating potential buying interest from stronger market participants.
As a result, the stock is anticipated to advance towards Rs 3,000-level in the near future, assuming no unfavourable developments arise in its upcoming financials scheduled to be presented on 1st August. Investors should keep a close eye on the company's financial performance during this time.
HEG has been enduring a sustained downtrend for several years. However, from February 2022 to June 2023, it went through a period of steady consolidation. Post June 2023, the stock displayed strong momentum and successfully broke above a downwards sloping trendline on significant trading volumes.
Analyzing the weekly chart, we can observe the formation of a Flag and Pole Pattern, with a potential breakout level at Rs 1,700-level. If the stock manages to break out above Rs 1,700 with convincing volumes, it is likely to trigger a substantial rally, targeting levels of Rs 2,200 and Rs 2,500.
It is important to note that the critical support for the stock is identified at Rs 1,550-level. As the stock is currently in a recovery phase rather than a strength phase, traders are advised to exercise caution while making decisions related to HEG.
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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