Bears made an attempt to break the support of 21,500 mark, but there was counter attack by bulls which ultimately helped the index hold the said support levels. Hence, unless and until there is a decisive close below 21,500, the rangebound action in the Nifty 50 is expected to continue with resistance at 21,700-21,800, experts said.
On January 10, the benchmark indices showed nice recovery and reported smart gains in last hour of trade. The BSE Sensex rallied 272 points to 71,658, while the Nifty 50 climbed 74 points to 21,619 and formed bullish candlestick pattern on the daily charts but there was continuation in lower highs, lower lows formation for third straight session.
The broader markets had a mixed trend, as the Nifty Midcap 100 index was up 0.3 percent and Smallcap 100 index fell 0.15 percent, while the market breadth was slightly in favour of bulls.
Stocks that performed far better than benchmark indices included Tanla Platforms, Delhivery, and Yes Bank. Tanla Platforms has seen a decisive breakout of nearly a month long consolidation as well as downward sloping resistance trendline, and started trading above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average), which is a positive sign. The stock jumped 10 percent to Rs 1,197 and formed robust bullish candlestick pattern on the daily charts with healthy volumes.
Delhivery has also seen a breakout after four days of consolidation and formed strong bullish candlestick pattern on the daily timeframe with healthy volumes. The stock jumped 6 percent to Rs 422 and traded above all key moving averages, while it also maintained higher highs, higher lows formation on the daily charts, which is a positive sign.
Yes Bank has decisively surpassed the swing high of December 14, 2022 on Wednesday by forming healthy bullish candlestick pattern on the daily timeframe with strong volumes. Further, it has maintained higher highs, higher lows formation on the daily charts since October lows, while the stock rallied 5.4 percent to Rs 25.5, the highest closing level since July 10, 2020.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Since the last 3 weeks or so, the said counter has been consolidating in zones Rs 1,070–1,150. In the previous trading session, it took out the said range, thus making it lucrative at current levels.
On the indicator front, the weekly MACD (moving average convergence divergence) has given a bullish cross exactly above the zero line, which is a sign of further bullishness in the counter.
Thus, one can buy in the range of Rs 1,175–1,200 with an upside target of Rs 1,350 and a stop-loss of Rs 1,099 on a daily close basis.
Recently, the counter has violated its 1.5-year bear trendline, which is looking very promising. Also, from an indicator point of view, the weekly RSI (relative strength index) has reversed from 40 levels and is currently placed above 50 levels, which affirms our bullish stance on the counter.
Thus, one can buy in the zone of Rs 410–420 with an upside target of Rs 465 and a stop-loss of Rs 380 on a daily close basis.
Recently the said counter has given clean breakout on weekly time frame chart along with Stochastics reversing from 70 zone which is looking lucrative at current levels. Also, Yes Bank has taken out its 1 year old high of Rs 24.75 thus adding further bullish stance in the counter.
Thus investors/traders can enter longs in the zone of Rs 24-26 with upside target of Rs 33 and stop-loss of Rs 21 on daily closing basis.
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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