The benchmark indices fell seven-tenth of a percent on September 15, as bears continued to hold control over Dalal Street for yet another session.
The BSE Sensex declined over 400 points to settle a tad below the psychological 60,000 mark, and the Nifty50 slipped more than 120 points to 17,877 and formed a bearish candle on the daily charts.
The outperformance of broader markets continued on Thursday as well. The Nifty Midcap 100 index gained four-tenth of a percent and the Nifty Smallcap 100 index closed on a flat note.
Stocks that bucked the trend included Ceat, which was locked in the 20 percent upper circuit at Rs 1,661.60, the highest closing level since February 12, 2021 and formed a robust bullish candlestick pattern on the daily charts with high volumes. The stock has seen a decisive breakout of long downward sloping resistance trend line adjoining February 4, 2021 and September 6, 2022.
Welspun Corp was also in focus, climbing more than 8 percent to Rs 264 and formed bullish candle on the daily charts with above average volumes. On the monthly charts, it has seen a breakout of long downward sloping resistance trend line adjoining January 1, 2008, and May 2, 2022.
EID Parry India has seen yet another bullish candlestick pattern formation on the daily charts with strong volumes as the stock closed with more than 5 percent gains at Rs 595.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
In this quarter so far, the stock rallied over 75 percent. On last Thursday, the stock hit 20 percent upper circuit, it also registered a fresh 52-week high of Rs 1,661.60. On daily and weekly charts, the stock has formed promising price volume range breakout formation and it also formed long bullish candle which is broadly positive.
We are of the view of that the medium term texture of the stock is positive side but due to short term overbought conditions we could see some profit booking at higher levels.
Hence, buying on corrections and sell on rallies would be the ideal strategy for the short term traders. Rs 1,550 and Rs 1,500 would be the key support zone.
As long as the stock is trading above the same, the uptrend wave is likely to continue. Above which, it could move up to Rs 1,750-1,850. On the flip side, below Rs 1,500 uptrend would be vulnerable.
The stock has rallied over 8.5 percent on September 15. It opened with a strong note on Thursday and quickly surpassed the short term resistance of Rs 260 with strong volume activity.
Despite weak market conditions, Welspun Corp held strong momentum throughout the day. On the short term time frame, the stock has formed strong price volume breakout pattern.
The texture of the pattern suggesting breakout action will continue in the near term if stock succeeds to trade above Rs 255 level.
For the swing traders, Rs 255 would be the sacrosanct level, and trading above the same we can expect uptrend continuation wave up to Rs 280-290.
After a short term correction, the stock took the support near Rs 525 and revered. Post reversal, it successfully trading above 50 and 20 days SMA (simple moving average) Rs 549, Rs 544.
On last Thursday the stock rallied over 5 percent and formed range breakout formation on daily charts. An incremental volume activity and long bullish candle on weekly charts indicating continuation of uptrend in the near future.
For the breakout traders Rs 575 and Rs 565 would be the key levels to watch. The overall chart structure suggests if the stock sustained above the same then breakout continuation formation is likely to continue till Rs 630-645.
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.