Bears retained their reign over Dalal Street for the second straight session with the benchmark indices shedding around half a percent and the broader markets losing more than 1 percent on June 23, tracking downtrend in their global counterparts. Most of key sectors, barring pharma, were under pressure on the last trading day of the week.
The Nifty50 formed bearish candlestick pattern on the daily charts, down 106 points to settle at 18,665 and the BSE Sensex has seen breaching 63,000 mark on the downside, declining 260 points to 62,979.
The Bank Nifty has taken a support at 43,500, falling over 100 points to 43,623, while the Nifty IT was also under pressure for yet another session but took support at 28,400-28,300 levels, down more than 250 points to 28,554.
Stocks that were in action on last Friday included DCM Shriram, ICICI Securities, and Natco Pharma. DCM Shriram rallied nearly 6 percent to Rs 917, the highest closing level since November 14 last year, with robust volumes, after consolidating for around a month. The rally helped it get back above 200-day EMA (exponential moving average Rs 864), which is a positive sign.
ICICI Securities jumped over 7 percent on Friday to Rs 563, the highest closing level since November 14 last year, with significantly higher volumes for yet another session. The stock continued uptrend for third straight session and has decisively broken the consolidation range of last more than couple of weeks.
Natco Pharma has also seen a big breakout of around six-week consolidation with strong volumes, rising 7.5 percent to Rs 674, the highest closing level since August 8 last calendar year. The stock has also seen a crossover with 50-day EMA crossing the 200-day EMA in the week gone by, which is a positive sign.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
After eight months of strong consolidation, the stock has decisively broken out its "multiple resistance" zone of Rs 896 on a weekly closing basis indicating strong comeback of bulls. This breakout is accompanied with huge volumes indicating increased participation.
The daily and weekly "band Bollinger" buy signal indicates increased momentum. The daily weekly and monthly RSI (relative strength index) is in bullish mode which signals rising strength.
Recently the stock has recaptured its 20, 50, 100-day SMA (simple moving average) and rebounded sharply indicating strong comeback of bulls.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 980-1,020 with downside support zone of Rs 870-850 levels.
On the daily and weekly timeframe the stock is in uptrend forming a series of higher tops and bottoms indicating bullish sentiments. Recently the stock has recaptured its 20, 50, 100 and 200-day SMA and rebounded sharply indicating strong comeback of bulls.
Huge volumes of rallies signify increased participation. On the weekly chart, the stock is on the verge of "Double Bottom" trend reversal pattern above Rs 580 levels. The daily weekly and monthly RSI is in bullish mode which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 650-680 with downside support zone of Rs 520-510 levels.
With Friday's strong gains, the stock has decisively broken out its six-week's "multiple resistance" zone at Rs 655 levels on huge volumes indicating rising participation. The stock has recaptured 20-day SMA and rebounded sharply, reconfirming positive bias.
In addition, the stock is well placed above its 50, 100 and 200-day SMA which also signals medium and long term bullish trend. The daily weekly and monthly RSI is in bullish mode which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 730-760 with downside support zone of Rs 650-620 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.
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