After a day of rally within the broad range seen on August 30, the market remained listless and closed with moderate losses amid mixed trend in global peers on September 6. The sectoral trend was also mixed with Metal and Oil & Gas being the biggest gainers.
The BSE Sensex declined 49 points to 59,197, while the Nifty50 fell 10 points to 17,656 and formed a small-bodied bearish candlestick pattern which resembles high wave kind of pattern formation on the daily charts.
But there was outperformance in the broader markets as the Nifty Midcap 100 index gained six-tenth of a percent and Smallcap 100 index rose third of a percent.
Stocks that bucked the trend included Aster DM Healthcare, which climbed nearly 4 percent to Rs 250 and formed strong bullish candlestick pattern on the daily charts for the second consecutive session with above-average volumes. It has also seen a breakout of small downward sloping resistance trend line adjoining August 2 and September 2.
Ujjivan Financial Services rose nearly 2 percent to Rs 210, the highest closing level since August 13, 2021 and formed a decent bullish candlestick pattern on the daily charts, while Elgi Equipments jumped more than 2 percent to end at a record closing high of Rs 551 and formed small-bodied bullish candle on the daily scale.
Here's what Ruchit Jain of 5paisa.com recommends investors should do with these stocks when the market resumes trading today:
The stock has been forming a ‘Higher Top Higher Bottom’ formation and has seen a decent outperformance in the last few months. The volumes along with the price up move are good and the RSI (relative strength index) readings, although in an overbought zone, is still indicating a positive momentum.
Traders with existing positions should continue to ride the trend while a buy-on-dip approach could be kept for fresh buying and any intermediate dips towards support could be seen as a buying opportunity.
The immediate supports for the stock are placed around Rs 520 and Rs 495. On the higher side, the possible targets as per the reciprocal retracement are seen around Rs 595 followed by Rs 700.
After ending its downtrend in the month of February 2022, the stock has gradually recovered from the lows and is now retracing the previous downmove. The intermediate corrections in the recent upmove have managed to find support around the 20-day EMA (exponential moving average) which is a positive sign.
The RSI oscillator too is indicating a positive momentum and hence, the pullback move could continue in the near term. The moving average support for the stock is now placed around Rs 189 while resistances are seen around Rs 227 and Rs 242.
The stock has recently given a breakout from its consolidating phase and is in an uptrend. Prices have broken the previous swing high resistances with rising volumes which is a positive sign.
The momentum readings on the daily as well as the weekly charts are positively placed and hence, the stock could continue its upmove in the near term. The immediate supports for the stock are placed around Rs 234 and Rs 227 while resistance is seen around Rs 280.
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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