The Nifty50 hit the crucial resistance of 19,850-19,875 for the second time this month and formed a ascending triangle kind of a pattern with an upward bias in momentum indicator RSI (relative strength index) on the weekly and monthly charts. This indicate the possibility of an upward journey towards 19,000-20,000 in the coming sessions, provided holding 19,700 as a support, experts said, adding that rangebound trade may continue till then.
On November 23, the Nifty50 sustained above the 19,800 mark for yet another session, though lost 10 points to 19,802, while the BSE Sensex was down 5 points to 66,018. However, the broader markets performed better than the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices ending flat and with seven-tenth of a percent gains.
Stocks that witnessed healthy buying interest among the Nifty500 pack included HPCL, Suzlon Energy, and Hero MotoCorp. Hindustan Petroleum Corporation (HPCL) hit 10-month closing high of Rs 326.70 on Thursday, rising 7 percent and formed robust bullish candlestick pattern on the daily charts with strong volumes. The stock traded above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average) and recouped all the losses seen in previous three-four sessions.
Suzlon Energy spiked 5 percent to Rs 39.20 and formed strong bullish candlestick pattern with no shadows on either side on the daily scale, with trading above all key moving averages after downtrend in previous three sessions. The stock has seen above average volumes.
With the recent upward journey, Hero MotoCorp went closer to its high of February 2021 (Rs 3,629). The stock jumped 4.5 percent to Rs 3,568 and formed strong bullish candlestick pattern with minute upper shadow on the daily scale with healthy volumes. Further, the stock traded above all key moving averages, 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:
Hero MotoCorp has given a strong breakout on weekly time frame. The stock has moved above the upper trendline of the triangle pattern. Nifty auto index is in uptrend since the low was made in March 2020 and since then we have not seen any reversal here.
Hero MotoCorp might try to catch up with the overall auto index on upside and can move towards the target to Rs 4,000 and possibly higher. Any dips can be used as buying opportunity in this stock as long as Rs 3,200 remains intact.
In short, overall trend for Hero MotoCorp is positive for the target of Rs 4,000 and higher, with Rs 3,200 as immediate support.
Hindustan Petroleum Corporation
HPCL has been moving higher recently and intact in strong uptrend. On the daily chart, in the previous session prices formed a bullish candle. Price has recently given breakout of rounding bottom at Rs 310 levels and now it has retest to the same breakout level hence it is expected to move higher.
We have shown ADX (average directional index) indicator which gives an indication if the stock is trending or in a trading range. The ADX of this stock is 55.52 giving an indication of a trending market. The reading above 25 means strong directional strength. Recently profit booking was witnessed which helped RSI (relative strength index) to cool off.
In short, trend for this stock is positive. One can ride the ongoing trend with the targets of Rs 345-350 as long as Rs 310 is intact on the downside.
Suzlon has continued to move sharply higher since May 2023. Prices have moved from Rs 8.50 to the high of Rs 44 thereby generating multibagger returns.
As of now the momentum indicator RSI is still not showing any slowdown as there is no negative divergence. Recently we saw a dip towards the mid Bollinger Bands which is acting as a classic support in the entire up move.
We can see that prices have reversed back on upside every time it has moved the mid average. Even this time prices formed a green candle after having Gap down but buying emerged back on upside.
So overall, trend for stock is positive for a move to the upper end of the bands which is near Rs 44 as long as the stock do not close below middle bands near Rs 35.
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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