The market closed a volatile and rangebound session on a negative note on August 18, but defended not only 19,250 but also the 19,300 mark and formed a Doji sort of candlestick pattern on the daily charts on the Nifty50. Hence, 19,300-19,250 is likely to act as a support for the index, with crucial hurdle at the 19,500 levels on the higher side, experts said, adding that breaking the levels on either side can decide further course of market action.
The BSE Sensex corrected over 200 points to 64,949, and the Nifty50 declined 55 points to 19,310, while the Nifty Midcap 100 and Smallcap 100 indices fell 0.2 percent and half a percent, respectively.
The Bank Nifty corrected further to 43,851, down 40 points, though showed some smart recovery from the day's low, while the Nifty IT extended selling pressure for yet another session, falling 456 points to 30,604.
Stocks that outperformed the broader markets included Aster DM Healthcare, Jyothy Labs and Emami. Aster DM Healthcare has formed bullish engulfing kind of a candlestick pattern on the daily charts with above-average volumes, and closed 5 percent higher at Rs 319.4. The stock is on the verge of a falling trendline breakout.
Jyothy Labs has formed a long bullish candlestick pattern on the daily scale after eight-day of consolidation and jumped over 4 percent to Rs 336, though volume remained low. The stock has been seeing higher highs, higher low formation on the daily charts since the end of March.
Emami has seen a decisive breakout of consolidation range and formed a long, bullish candlestick pattern on the daily timeframe, with above average volumes. The stock rose nearly 4 percent to Rs 528.6.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Emami exhibited a robust rally, followed by a consolidation phase within the Rs 530-500 range. However, in the last trading session, the stock decisively breached this consolidation, affirming the potential for a sustained upward trajectory.
A favourable RSI (relative strength index) crossover, accompanied by heightened trading volume during the breakout, further reinforces a positive outlook, highlighting increased market participation and a prospective buy signal.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 570-600, with downside support zone of Rs 500-480 levels.
Commencing July 2023, Aster DM Healthcare assumed a "Descending Triangular" pattern until breaking out above it in Friday's session, transcending the pivotal Rs 318 level. This breakout marks a definitive upward trend reversal, supported by escalated breakout volume, distinct from the dried volume during pattern formation.
Additionally, a positive RSI crossover affirms a buy signal, underscoring a favourable outlook.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 355-365, with downside support zone of Rs 295-285 levels.
After a notable surge, Jyothy Labs entered a consolidation phase towards the end of July 2023, confined within the range of Rs 334 to Rs 298. However, this consolidation was disrupted as the stock broke above the range in Friday's trading session, confirming a resumption of the upward trend.
The stock currently maintains its position above key moving averages, including the 20, 50, 100, and 200 SMAs (simple moving averages). This alignment strongly signals a sustained uptrend in progress.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 360-385, with downside support zone of Rs 310-300 levels.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
