The market is likely to consolidate further with a negative bias in the coming sessions. The crucial support to watch out for would be 21,500 on the Nifty 50, while 21,800-21,850 is expected to be the hurdle on the higher side, experts said, adding that unless and until the index gives strong close above the hurdle, the much-awaited 22,000 mark is unlikely.
On January 2, the BSE Sensex was down 380 points at 71,892, and the Nifty 50 fell 76 points to 21,666, while the broader markets corrected for the first time in last eight sessions, with the Nifty Midcap 100 and Smallcap 100 indices falling 0.2 percent each on profit-taking.
Stocks that bucked the trend included Lupin, Glenmark Pharma, and Lemon Tree Hotels. Lupin jumped more than 6 percent on Tuesday to Rs 1,394, the highest closing level since April 21, 2017. The stock has formed long bullish candlestick pattern on the daily charts with robust volumes and traded above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving averages), which is a positive sign.
Glenmark Pharma also hit the highest level since 2017, rising nearly 4 percent to Rs 889, the highest closing level since May 11, 2017. The stock has formed long bullish candlestick pattern on the daily timeframe with strong volumes, and traded above all key moving averages.
Lemon Tree Hotels decisively surpassed its previous record high (seen in September this year) and climbed 9.4 percent to end at record closing high of Rs 130. The stock has formed robust bullish candlestick pattern on the daily scale with significantly higher volumes, while trading above all key moving averages. Also, it has seen a breakout of falling resistance trendline.
Here's what Omkar Patil of Ashika Group recommends investors should do with these stocks when the market resumes trading today:
The stock trading at multi-year high indicates presence of positive momentum, and prices above short-term averages confirmed the presence of an uptrend. A recent upsurge in volumes signals potential continuation in the upward movement.
Investors are advised to consider buying this stock with a target of Rs 1,510, and the suggested stop-loss is at Rs 1,340 on a closing basis.
Lemon Tree is currently in a stellar uptrend, trading within ascending channels and forming higher highs and higher lows. A recent breakout from a narrow consolidation zone, supported by substantial volumes around the channel's support, indicates a continuation of the prior uptrend.
Investors can explore buying this stock with a target of Rs 140, and the recommended stop-loss is at Rs 125 on a closing basis.
Glenmark Pharma has emerged from a consolidation phase since July 2023, with the breakout accompanied by significant volumes, affirming the continuation of the prior uptrend. While the rising volumes with the upmove in the price illustrates the rising demand for the stock, the breakout on RSI (relative strength index) reflects positive momentum in the stock's trend.
Investors may consider buying this stock with a target at Rs 960, and the suggested stop-loss is at Rs 850 on a 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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