The Nifty faced strong resistance around 22,500 with consistent consolidation, but failed to hold the same on a closing basis since last Thursday. Hence, if there is a consolidation breakout and the index manages to close above 22,500, then 22,700-27,800 levels can't be ruled out in the coming sessions, while the support is expected to be around 22,300-22,200 levels, experts said.
On April 3, the Nifty 50 closed 19 points lower at 22,435, and the BSE Sensex declined 27 points to 73,877, while the broader markets outperformed the benchmark indices. The Nifty Midcap 100 index continued the uptrend for the eighth straight session and rose half a percent to end at a record closing high of 49,737, while the Nifty Smallcap 100 index gained for nine days in a row, rising 1.2 percent.
Moneycontrol selected three stocks that fared much better than the broader markets: Punjab National Bank, Escorts Kubota, and L&T Technology Services. Punjab National Bank has seen a breakout of horizontal resistance trendline and climbed 6.7 percent to Rs 135.15, the highest closing level since February 14, 2018. The stock traded above all key moving averages and formed strong bullish candlestick pattern on the daily charts, with healthy volumes.
Escorts Kubota seems to have bottomed out in mid-March and since then maintained uptrend despite intermittent consolidation. The stock rallied 4.6 percent to Rs 3,006 and formed a big bullish candlestick pattern on the daily charts with strong volumes.
L&T Technology Services has seen a breakout of long downward sloping resistance trendline adjoining highs of January 4, 2022 (record high), and February 12 this year, and clocked 3.12 percent gains to close at Rs 5,756.7. The stock has formed long bullish candlestick pattern on the daily charts with healthy volumes, while trading above all key moving averages.
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
In the previous session, Punjab National Bank showed significant rise. On the below chart, we can see that prices finally gave breakout of the consolidation as it has given a close above Rs 132 levels.
Recently Parabolic SAR (stop and reverse) dots have started to form below the price which keeps short term bias on the positive side. Along with this, MACD (moving average convergence and divergence) has shown a bullish crossover which is acting as a double confirmation.
In short, overall tone for Punjab National Bank is bullish. Use dips towards Rs 133 as a buying opportunity with a target of Rs 139. While on the downside, Rs 131 is the nearest support level.
More than double the average volume suggests that buying pressure has increased. In the previous session, prices gave close above previous swing high.
Also, prices have given breakout of the downward sloping trendline which indicates strength. For now, with follow up buying we can expect more rise in this stock.
In short, trend for Escorts is bullish. A break above Rs 3,020 can lift the price higher towards Rs 3,150 as long as Rs 2,880 holds on the downside.
LTTS maintained its solid uptrend and kept moving higher. Price has closed above Rs 5,680 level which confirmed breakout of the rounding bottom pattern.
Recently prices gave breakout of the Ichimoku cloud which is a positive sign. Also, since past 8 trading sessions not a single candle has given a close below previous day’s low which suggests strength in the ongoing trend.
In short, trend for this stock is positive. Use dips towards Rs 5,650-5,700 as a buying opportunity for a move towards Rs 6,250-6,300 levels as long as Rs 5,530 holds on the downside.
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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