The market remained in a consolidation mode for yet another session on August 29, but managed to extend the upward journey with the higher-high, higher-low formation. Hence, there is a possibility of the Nifty50 going past 19,400 points in the coming sessions, and sustainability above this can lift the index towards the 19,500-19,600 levels, whereas 19,300-19,250 is expected to act as a support area, experts said.
The Nifty50 gained 37 points to 19,343, and the BSE Sensex climbed 79 points to 65,076, while the Nifty Midcap 100 and Smallcap 100 indices climbed third of a percent and half a percent, respectively.
The Bank Nifty has also seen consolidation and closed off day's high at 44,495, up 0.6 point, while the Nifty IT rose 92 points to 30,866 and traded within previous day's range.
Stocks that fared much better than broader markets included Nazara Technologies, BHEL, and BEML. Nazara Technologies has seen a nice breakout of downward sloping resistance trendline adjoining highs of September 12, 2022 and July 3, 2023, and formed strong bullish candlestick pattern on the daily charts with above average volumes. The stock jumped 4.7 percent to Rs 759 on the NSE, the highest closing level since September 12 last year.
BHEL continued to hit fresh multi-year highs and closed 4.7 percent higher at Rs 114.65, forming long bullish candlestick pattern on the daily scale with above average volumes. The stock continued its uptrend for yet another session.
BEML has formed robust bullish candlestick pattern on the daily timeframe with multi-fold jump in volumes. The stock rallied more than 13 percent to end at record closing high of Rs 2,461, while it continued its uptrend with higher highs, higher lows formation for fourth consecutive month.
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
Since 2021, the stock has been in a downtrend, but it shifted to consolidation mode from June 2022 onwards. However, the situation changed from October 2022, as the stock initiated the formation of a "Cup and Handle" rounding pattern. This pattern often signifies accumulation.
Recently, the stock breached the right lip of the cup, approximately at Rs 734 levels. Maintaining a position above Rs 720 is important for a successful breakout, with anticipated targets lying in the range of Rs 860-900 levels.
Since 2022, the stock has been experiencing a robust uptrend, marked by consecutive higher highs and higher lows. Notably, the stock's momentum has intensified, leading to the emergence of a compelling impulse.
Investors are advised to stay on the trend's trajectory, while traders should consider trailing their stop losses by adjusting them to each successive higher low formed by the stock.
The stock has encountered an extended consolidation period spanning from 2017 to June 2023. Within this consolidation, the stock shaped a distinctive Cup and Handle pattern.
Considering the prolonged duration of this breakout and the substantial trading range, it's anticipated that the stock will persist in its current impulsive trajectory.
Investors are encouraged to retain their positions, targeting a range of Rs 2,880-3,000. Similarly, traders are advised to employ trailing stop-losses to manage their positions effectively.
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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