The market looks tired, given the rush to book profits at the top after a rally towards a new record high in the range of 22,750-22,800 on the Nifty 50. Hence, the index is likely to consolidate in the coming sessions with hurdle on the higher side at 22,800 as breaking of the same can take the index towards 23,000 mark, while the 22,500 is expected to be immediate support, experts said.
On April 9, the benchmark indices closed moderately lower after hitting a new high of over 22,750 on the Nifty 50 and above 75,000 on the Sensex. The Nifty 50 fell 24 points to 22,643 and formed a bearish candlestick pattern on the daily charts, while the BSE Sensex declined 59 points to 74,684.
The broader markets were mixed with the Nifty Midcap 100 index declining 0.3 percent and Smallcap 100 index rising third of a percent.
Stocks that outperformed the broader markets as well as the benchmark indices included Tata Power Company, Apollo Hospitals Enterprise, and Amara Raja Energy & Mobility. Tata Power Company surpassed its previous record high and hit a new high of Rs 436.15 on Tuesday. The stock ended at new closing high of Rs 430, up 3.25 percent with above average volumes and formed bullish candlestick pattern on the daily charts, while it traded above all key moving averages.
Apollo Hospitals Enterprise has seen a breakout of downward sloping resistance trendline adjoining highs of February 22 and April 1, and formed a long, bullish, candlestick pattern on the daily timeframe with above average volumes. The stock rose over 3 percent to Rs 6,505 and traded above all key moving averages.
Amara Raja Energy & Mobility has also seen breakout of falling resistance trendline adjoining highs of February 6 and March 11 and formed a bullish candlestick pattern with long upper shadow on the daily charts. The stock gained 3.3 percent to close at Rs 897.5 with strong volumes, and traded above all key moving averages.
Here's what Riyank Arora of Mehta Equities recommends investors should do with these stocks when the market resumes trading today:
The stock has given a good breakout above its trendline resistance mark of Rs 860 and now touched the next resistance mark of 915 on its daily charts.
With the RSI (relative strength index 14) on daily time frame being near 69.76, the overall momentum looks to be extremely strong on the counter. We advise traders to focus on buy on dips approach for the stock with a set stop-loss at Rs 850 on daily closing basis for potential target of Rs 950 and above.
The stock gave a good breakout above its anchor VWAP (volume-weighted average price) resistance mark of Rs 6,275 and also successfully re-tested the same. With the overhead resistance now being near Rs 6,800, the stock should be looked upon as from a buy on dips approach.
Any push towards Rs 6,400 should offer a good buy opportunity in the stock with a set stop-loss at Rs 6,200 on daily closing basis for potential target of Rs 6,800 and above.
The stock has touched important resistance mark of Rs 433 on its daily charts. Given that the stock has been moving in a rising wedge formation and the RSI (14) on daily charts being near 69, momentum looks strong. We advise traders to hold their positions with a trailing stop-loss of Rs 415 for potential target of Rs 445 and Rs 450.
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