After surpassing 19,300 mark since the start of current week, the market remained rangebound with facing resistance on higher side at around 19,450-19,500 levels. Hence, unless and until the index breaks this 19,300-19,500 range on either side, the Nifty may remain consolidative within this range in coming sessions, experts said.
On November 9, the Nifty50 declined 48 points to 19,395 and formed bearish candlestick pattern on the daily charts by taking support at 21-day EMA (exponential moving average), while the BSE Sensex was down 143 points at 64,832.
The broader markets had a mixed trend with the Nifty Midcap 100 index rising 0.2 percent and Smallcap 100 index falling 0.2 percent.
Stocks among Nifty500 that outperformed broader markets included Aegis Logistics, Metropolis Healthcare, and CDSL. Aegis Logistics jumped over 7 percent to Rs 316 on the NSE after consolidation withing Rs 280-300 range, and formed strong bullish candlestick pattern on the daily charts with significantly higher volumes. With Thursday's rally, the stock climbed above 21-day EMA and reached closer to 50-day EMA (Rs 320).
Metropolis Healthcare turned strong since the start of current month and on Thursday, rallied 5.6 percent to Rs 1,624, the new 52-week high. The stock has formed robust bullish candlestick pattern on the daily scale with strong volumes, with trading above all key moving averages (20, 50, 100 and 200-day EMAs), which is a positive sign.
CDSL ended at fresh record closing high of Rs 1,693, up more than 5 percent and formed long bullish candlestick pattern on the daily timeframe with healthy volumes. The stock traded far above key moving averages, with momentum indicator RSI (relative strength index) at 80 levels, indicating overbought zone.
Here's what Foram Chheda of ChartAnalytics recommends investors should do with these stocks when the market resumes trading today:
Aegis Logistics experienced a steady decline after forming a double top near Rs 380-385 range in August, resulting in the stock falling below the 50-day, 100-day, and 200-day moving averages which signified a weakening trend.
The drop in price stabilized near Rs 280-282 range before rebounding. The stock established a base at the recent lows before gaining upward momentum, supported by increased volume.
Currently, the PSAR (parabolic stop and reverse) indicates a buy mode, suggesting potential continued growth towards Rs 326 levels, where it may encounter resistance aligned with the 50-day MA. Short-term traders should consider reducing their positions at this point.
In the previous month, Metropolis Healthcare stock made an unconfirmed breakout from its Rs 1,510-1,513 resistance level, followed by a decline. The stock found support slightly above the 200-day MA at Rs 1,360 levels, triggering a rebound that surpassed its previous peak.
This upward movement, coupled with crossing multiple moving averages, signaled a shift in the trend from sideways to upward.
Concurrently, a volume increase underscored the bullish sentiment. Therefore, traders might consider purchasing the stock at Rs 1,575 levels, anticipating a potential rise towards Rs 1,690 levels.
Central Depository Services (CDSL)
After forming a low near Rs 880 levels in March, the stock saw a recovery, surpassing the 50-day, 100-day, and 200-day moving averages, signaling a bullish trend. The stock then peaked around Rs 1,430 levels in September and underwent a consolidation period for about a month before ascending further. This consolidation was supported by the 50-day moving average, leading to a continuation of the upward trend.
The breakout from this consolidation was accompanied by a substantial volume increase, reinforcing the bullish sentiment. The stock is now marking an all-time closing high, suggesting further potential growth.
Investors are advised to maintain their holdings for a target of Rs 1,800, and adjust the stop-loss higher to Rs 1,560.
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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