After consolidation for the last couple of sessions and a narrowed trading range on September 26 compared to the previous session, the Nifty50 is expected to decisively break the consolidation on either side of the 19,600-19,800 range, experts said. The Bank Nifty also showed a similar kind of trend. Hence, the market movement in the coming sessions will be eyed.
The Nifty50 fell 10 points to 19,665, and the BSE Sensex declined 78 points to 65,945, while the Nifty Midcap 100 index dropped 0.2 percent and Smallcap 100 index was up 0.6 percent.
The Bank Nifty also traded within the previous day's range like the Nifty50, falling 142 points to 44,624, while the Nifty IT slipped 178 points to 32,471, but held the 21-day EMA (exponential moving average placed at 32,362).
Stocks that bucked the trend included Apar Industries, Varun Beverages, and JSW Energy. Apar Industries rallied nearly 7 percent to end at a record closing high of Rs 5,805 and formed a long bullish candlestick pattern on the daily charts, with strong volumes. Further, the stock traded well above all key moving averages, which is a positive sign, while on the monthly charts, it continued higher highs and higher lows formation for the eighth consecutive month.
Varun Beverages has seen a nice decisive falling resistance trendline breakout in the initial period of trade on September 26 and recorded 4.5 percent gains at Rs 967.55. The stock has formed a long bullish candlestick pattern on the daily timeframe with robust volumes and has consistently taken support at 21-day EMA since August.
JSW Energy also gave a downward sloping resistance trendline breakout and from strong bullish candlestick pattern on the daily scale with healthy volumes. It has also been taking support at 21-day EMA since August and closed 4.5 percent higher at Rs 440.
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
The stock has been riding a robust uptrend since mid-2022, and this upward momentum gained further strength in early 2023, entering a phase of trend acceleration. An interesting aspect to note is the stock's recent breakout above a critical level.
By considering an extension of the previous price move (from Rs 1,850 to Rs 560), it becomes apparent that the stock consolidated near the 361.8 percent extension of this range. Last week, the stock successfully broke above this level, initiating a move towards Rs 6,300-6,400 zone.
The stock has consistently held a prominent position among my preferred setups in the FMCG sector for over two years. During this time, it has formed a pattern characterized by a sequence of higher highs and higher lows. This particular stock has diligently adhered to its 13-week EMA (exponential moving average) since 2022, with only occasional, minor deviations.
Impressively, it continues to display robust relative strength when compared to Nifty and other indices. In the near future, I anticipate that the stock will make a move towards Rs 1,080-1,100 range.
The stock embarked on an accelerated upward trajectory at the beginning of 2021, with its price surging from Rs 80 to approximately Rs 400 in less than six months. Following this impressive rally, the stock underwent a 21-month period of time correction.
During this phase, the stock formed a Descending Triangle pattern, typically considered bearish. However, contrary to expectations, the stock recently broke out of this pattern in a bullish manner, resulting in a rapid upswing. According to the pattern's target projection, the stock is anticipated to advance towards the Rs 500-520 levels.
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