The market failed to sustain the strong intraday uptrend and wiped out all morning gains to close below the 19,400 levels on the Nifty50 on August 24, the weekly F&O expiry day. In fact, bears filled the entire positive opening gap. This suggests that bulls will not get enough strength unless the Nifty50 closes and sustains above the 19,500 mark. Till then, the index may remain in the 19,250-19,600 range in near term, experts said.
The Nifty50 dropped 57 points to 19,387, and formed the long, bearish candlestick pattern on the daily charts. The BSE Sensex was down 181 points at 65,252, while we have seen the mixed trend in broader markets. The Nifty Midcap 100 index was up 0.24 percent and Smallcap 100 index fell 0.35 percent.
The Bank Nifty also closed off the day's high, rising just 17 points to 44,496 after losing over 400 points from an intraday high. The Nifty IT gained strength, up 188 points at 31,112.
Stocks that fared better than the broader markets included GMR Airports Infrastructure, JK Paper, and Tata Power Company. GMR Airports Infrastructure ended at a multi-year high of Rs 64.90 on the NSE, up 9.4 percent and formed a robust bullish candlestick pattern on the daily charts, with a multi-fold jump in volumes. The stock sustained the uptrend for the fourth straight session, trading above all key moving averages.
JK Paper returned to the high of May, rising 4.4 percent to Rs 380, and formed a long bullish candlestick pattern on the daily scale with strong volumes for yet another session. The stock has decisively broken the downward sloping resistance trendline adjoining highs of December 21, 2022 and August 17, 2023.
Tata Power Company gained 1.7 percent to Rs 249.75 on the NSE, the highest closing level since April 22, 2022. The stock has formed a bullish candlestick pattern with long upper shadow on the daily timeframe, indicating profit-booking at higher levels. It traded in the green across the week with strong volumes on all four days.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
On Thursday, the stock opened with a positive note and held the positive momentum throughout the day. In this quarter so far, the stock rallied nearly 50 percent. The short-term texture of the stock is bullish but due to temporary-overbought conditions, we could see some profit booking at higher levels.
For the trend following traders now, Rs 61.50 would be the trend decider level. Above the same, the stock could move up till Rs 70-72. On the flip side, below Rs 61.50, traders may prefer to exit from the trading long positions.
Technically, on daily charts, the stock has formed long bullish candle and after a long time, it succeeded to close above 200-day SMA (simple moving average) which is largely positive.
In addition, on daily charts, it has formed higher bottom formation that also supports uptrend. For the positional traders, Rs 362 would be the sacrosanct support level.
If it manages to trade above the same then we can expect uptrend continuation wave up to Rs 400-410 in the medium term.
In this week, the stock rallied over 8 percent. On daily and weekly charts, the stock has formed breakout formation, which supports further uptrend from the current levels. Technically, the short-term texture of the stock is positive side but due to temporary overbought situation, we could see rangebound activity in the near future.
Hence, buying on dips and sell on rallies would be the ideal strategy for the short-term traders. Rs 245 and Rs 240 would be the key support zone. As long as the stock is trading above the same, the uptrend wave is likely to continue. Above which, it could move up to Rs 255-260.
On the other side, below Rs 240, uptrend would be vulnerable.
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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