Technically, the market is expected to be rangebound and consolidative as long as it trades below the 22,300 level, with immediate support at the 22,000 mark, experts said, adding that a decisive close above 22,300 can take the Nifty 50 towards the next key resistance area of 22,500 level.
On February 26, the Nifty 50 was down 91 points to 22,122, while the BSE Sensex fell 353 points to 72,790 and formed a small bearish candlestick pattern on the daily charts. The Nifty Midcap 100 and Smallcap 100 indices were under pressure, shedding 0.36 percent and 0.26 percent.
Stocks that bucked the trend on Monday included LIC Housing Finance, Sobha, and PB Fintech. LIC Housing Finance closed at multi-year high of Rs 659, up 2.6 percent and formed a bullish candlestick pattern on the daily charts after several days of consolidation, with above-average volumes. The stock traded above all key moving averages, which is a positive sign.
Sobha ended at a closing high of Rs 1,584, up 8.5 percent after breaking out of the downward sloping resistance trendline, and formed long bullish candlestick pattern on the daily timeframe with above average volumes.
PB Fintech reached to the highest level since December 2021, rising 7 percent to Rs 1,099 and formed strong bullish candlestick pattern on the daily scale with healthy volumes. The stock traded well above all key moving averages and has seen a breakout of long horizontal resistance trendline, which is a positive sign.
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
On the below chart, we can see that Parabolic SAR (stop and reverse) dots continued to form below the price which keeps overall tone on the positive side. One can keep riding the trend by keeping Parabolic SAR as a trailing stoploss.
Along with this, KST (know sure thing) has just turned above signal line and also trading above the zero line which suggests that good momentum is likely to continue in this stock.
In short, outlook for PB Fintech remains positive. Use dips as a buying opportunity for a move towards Rs 1,150, while on the downside Rs 1,050 is the nearest support.
The stock gave closing above previous day’s high. It is also making formation of higher high and higher low. As per current scenario, RSI (relative strength index) is trading above 60 which is good sign.
Also, middle line of the Bollinger bands which is 20 moving average is acting as a good support for a stock and prices have bounced back on the upside from it. Support as per this is near Rs 640 levels.
In short, view for LIC Housing Finance is bullish. If the stock is able to cross Rs 670 levels then further upward movement can be seen with the target of Rs 710 as long as Rs 640 holds on the downside.
Sobha has been moving higher recently and intact in strong uptrend. The stock is moving in a rectangular range over the last few days indicating accumulation in the stock. Price has closed above this trading range which can result into a bullish breakout of the rectangular pattern.
MACD (moving average convergence divergence) is above 0 and MACD line crossed above the MACD signal line which indicates that bullish momentum has increased in this stock and may continue in the coming session.
In short, trend for this stock is positive. Use dips towards Rs 1,550-1,570 as a buying opportunity for a move towards Rs 1,730-1,750 levels as long as Rs 1,500 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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