For the benchmark Nifty, 19,800-19,900 is expected to remain a crucial hurdle on the higher side and if the index goes past it decisively, it can move towards 20,000-20,200, experts said. It should hold support at 19,600 for the uptrend to continue.
On November 21, the benchmark indices performed far better than broader markets and remained in a positive terrain throughout the session. The Nifty closed 89 points higher at 19,783 and formed a small bullish candlestick with a long upper shadow on the daily charts. The Sensex was up 276 points at 65,931. Nifty midcap 100 and smallcap 100 indices closed flat.
Stocks that saw strong buying interest included KNR Constructions, Prism Johnson, and NHPC.
After a two-day correction and consolidation, KNR Constructions resumed a robust upward rally and formed a strong bullish candlestick with robust volumes. The stock jumped 6 percent to Rs 298, the highest closing since March 14, 2022 and traded above all key moving averages (20, 50, 100 and 200-day exponential moving averages), which is a positive sign.
Prism Johnson climbed 5 percent to end at a record closing high of Rs 173 and formed a long bullish candlestick on the daily charts with above-average volumes. The stock saw a breakout of the horizontal resistance trendline last week and maintained the upward rally for the fifth consecutive week with healthy volumes.
NHPC also broke out of the horizontal resistance trendline adjoining multiple touchpoints and formed a bullish candlestick with upper & lower shadows on the daily scale with healthy volumes. The stock rose 3 percent to Rs 54.40 and traded above all key moving averages.
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
The stock was in a robust uptrend from 2020 until mid-2021. Following this, it entered a consolidation phase with a mild price correction. In recent weeks, there seems to be a shift in momentum, as the stock formed higher highs and higher lows.
During the latest upmove, it also broke above the multi-week resistance level of Rs 285. Sustaining above the level, the stock may continue to advance within the rising channel, targeting levels around Rs 330-320.
Investors and traders could keep an eye on the stock for potential further upside.
The stock, part of the public sector enterprise (PSE) sector, has been robust since the beginning of 2023. The upward trend, which started from the lows of Rs 15 in March 2020, accelerated post-May 2022, with the stock rallying from Rs 27 to Rs 54 in 18 months.
Closing above Rs 51.75, which is the 261.8 percent extension of the prior fall, suggests strength. If it continues to spend more time above this level, the stock can rally further.
Investors and traders may want to monitor the stock for potential bullish momentum.
The stock has not given significant returns for more than five years. It went through a phase of time and price correction from 2018. It has now formed a Cup and Handle pattern, indicative of accumulation over time.
The stock recently surpassed its 2018 high. This is significant because that year marked a correction in mid and small-caps. Empirical observations suggest that a stock moving above its 2018 highs may see a 20-25 percent price increase.
Investors may find this observation noteworthy, as they analyse the stock's potential for a bullish move.
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