We have seen a healthy start to the equity markets in the morning, but the same momentum could not sustain in the later part of the session due to profit-taking at higher levels as a result of which the Nifty50 closed below 19,500 for the fifth time in the last six consecutive sessions. Positive global cues amid falling US inflation and rally in technology stocks supported the market sentiment.
The BSE Sensex jumped above the 66,000 mark for the first time in its history, rising 165 points to end at 65,559, and the Nifty50 rose 30 points to 19,414, whereas the Nifty Midcap 100 and Smallcap 100 indices were under pressure, falling 0.8 percent and 1 percent respectively.
Bank Nifty also traded in line with the Nifty50, advancing by just 26 points to 44,665, while the Nifty IT was the star performer, climbing more than 500 points to 29,628.
Stocks that outperformed broader markets included Sunteck Realty, PB Fintech and Mahindra Holidays. Sunteck Realty failed to sustain its all gains as there was profit-taking at higher levels. The stock rose 1.3 percent to Rs 334.55 and formed small bodied bullish candlestick pattern with a long upper shadow on the daily charts. The stock could not hold above 200-day EMA (exponential moving average Rs 336), which is likely to be crucial for further rally in the stock.
PB Fintech shares rallied nearly 4 percent to Rs 763 and formed a bullish candlestick pattern on the daily charts, with above-average volumes. The stock has seen the formation of higher highs, and higher lows for the second consecutive session and had broken the consolidation range in the previous session.
Mahindra Holidays and Resorts India rose 3 percent to Rs 320 and formed bullish candlestick pattern with long upper shadow on the daily timeframe. The trading volume was robust and also there was a decisive breakout of downward-sloping resistance trendline, which is a positive sign.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
The stock was in a sloping channel for the past many weeks. Eventually, its downward move stopped near the important demand zone. Moreover, the strong rebound in the counter from its demand zone on a daily and weekly scale suggests that the bullish momentum remain in the near future.
Unless it is trading below Rs 320, positional traders could retain an optimistic stance and look for a target of Rs 360.
After its declining trend from the higher levels, the counter was in the accumulation zone where it was trading in a range. 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 bullish trend in the near term.
For positional traders, Rs 720 would be the trend decider level. Trading above the same, uptrend formation will continue till Rs 810. However, if it closes below Rs 720, traders may prefer to exit from trading long positions.
The stock has given a breakout of its Ascending 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 stock indicates the beginning of a new up move from the current levels.
For the traders, Rs 305 would be the key support level to watch out. Above which the uptrend structure will continue until Rs 345.
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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