The market remained in a consolidation and rangebound mode after hitting a swing low in the 17,250-17,300 area on the last day of February. On March 2, the benchmark indices retreated most of previous day's gains with the BSE Sensex itself falling a tad more than 500 points to 58,909, dented by technology, banking and financial services, auto and FMCG stocks.
The Nifty50 has managed to defend 17,300 throughout session and closed with 129 points loss at 17,322, forming a bearish candlestick pattern on the daily charts, with making a lower-high-lower-low formation.
The broader markets declined but performed better than frontliners. The Nifty Midcap 100 index fell 0.3 percent and Smallcap 100 index dropped 0.2 percent on weak breadth.
Stocks that have seen action on Thursday included Suprajit Engineering which climbed 3.7 percent to Rs 372, the highest closing level since April 21 last year and formed long bullish candle with upper shadow on the daily charts indicating some profit booking at higher levels. The stock has seen a breakout of Flag and Pole sort of pattern formation with significantly higher volumes, which is a positive sign.
Coal India also outperformed the broader markets, rising nearly 2 percent to Rs 223, forming bullish candlestick pattern on the daily charts for second straight session, with making higher highs higher lows for yet another day. The stock came back above all key moving averages. It has seen a breakout of long downward sloping resistance trendline adjoining highs of November 9 last year, and January 24, 2023.
Siemens retreated sharply after recent consolidation and record high, falling nearly 4 percent to Rs 3,132. The stock has seen formation of big bearish candlestick pattern on the daily charts, after Doji pattern formation in previous session, but still maintained short term and long term key moving averages.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
The stock has given a breakout of its Symmetrical Triangle chart pattern with a strong bullish candlestick. Additionally, on the daily charts, it has formed a higher bottom formation, hence the structure of the counter indicates further bullish momentum from the current levels.
For positional traders, Rs 215 would be the trend decider level. Trading above the same uptrend formation will continue till Rs 240. However, if it closes below Rs 215, traders may prefer to exit from trading long positions.
On the weekly scale, the stock is trading into a rising channel chart formation making the higher top and higher bottom constantly. As a result, all major technical trends indicators such as MACD (moving average convergence divergence) and ADX (average directional index) are strong and steady.
Therefore, upward movement from the current level is very likely to continue in the coming horizon. For the traders, Rs 3,010 would be the key support level to watch out. Above this, the uptrend structure will continue until Rs 3,350.
After a sharp decline from the higher levels, the counter was in the accumulation zone where it was trading in a rectangle formation. However, on the daily charts, there is a gradual up move in the counter along with incremental volume activity, which suggests a new leg of a bullish trend in the near term.
Unless it is trading below Rs 357 positional traders retain an optimistic stance and look for a target of Rs 395.
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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