It looked like a bad session for the market initially when its global counterparts went into correction after Federal Reserve chair Jerome Powell reiterated its inflation concern and said the interest rate hike will continue at the cost of pain in consumers and businesses, but the benchmark indices showed significant recovery from losses in the initial hour and remained rangebound for the rest of the session to close down 1.5 percent on August 29.
The BSE Sensex fell nearly 1,500 points in the opening trade, but finally settled with a loss of 861 points at 57,973, while the Nifty50 plunged 246 points to 17,313.
The broader markets also saw a correction on Monday, but the loss was less compared to the benchmark indices. The Nifty Midcap 100 and Smallcap 100 indices fell 0.8 percent and 1 percent.
Stocks that were in action and bucked the trend included Escorts Kubota, and Colgate Palmolive which were the biggest gainers in the futures & options segment.
Escorts Kubota climbed nearly 6 percent to end at record closing high of Rs 1,943 and formed robust bullish candlestick pattern on the daily charts with strong volumes.
Colgate Palmolive also formed strong bullish candle on the daily scale with robust volumes as it jumped nearly 4 percent to Rs 1,630, the highest closing level since May 2. The stock has also seen a breakout of long downward sloping resistance trendline adjoining July 23, 2021 and May 2, 2022.
Aegis Logistics jumped 10 percent to Rs 295, the highest closing level since August 3, 2021 and saw formation of bullish candlestick pattern on the daily charts with healthy volumes.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Aegis Logistics on the daily timeframe, we can spot that prices were in a clear downtrend from July 2021 and later from December 2021 prices formed a base in the range between Rs 170 – 250 levels.
Prices on July 21, 2022 gave a breakout from Symmetrical Triangle pattern which pointed towards the beginning of new trend on the upside. The breakout was confirmed by the high volumes.
Post the breakout prices retested the high of triangle and showed a bounce, which indicates continuation of the uptrend.
The Bollinger band have started to expand which tells that the volatility in the prices are rising for upside move.
RSI (relative strength index) plotted on the daily as well as on weekly timeframe is above 50 mark indicating strong momentum in the price.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 340, with a strict stop-loss of Rs 250 on the closing basis.
Prices after uptrend from March 2022 made a base in the form of Inverse Head and Shoulder, which is a bullish pattern.
In the latest trading session (August 29), prices gave a breakout from the Inverse Head and shoulder pattern with high volumes, which indicates a continuation of the uptrend.
Prices have sustained above upper Bollinger band which tells that the volatility in prices are rising for up move.
RSI plotted on the daily timeframe have showed a Range shift which reflects the increasing momentum in the prices.
We recommend traders and investors to buy this stock for the target of Rs 1,760 where the stop-loss must be at the level of Rs 1,590, strictly on the closing basis.
Escorts, around the level of Rs 1,456, witnessed change in the polarity by its prices, which shows the bullish sentiment in the prices.
In the latest trading session (August 29), prices gave a breakout from the Rounding Bottom pattern, which indicates a beginning of the trend on the upside.
The breakout was confirmed as it was accompanied by high volumes.
The Bollinger band have started to expand which tells that the volatility in the prices are rising for uptrend.
RSI plotted on the daily as well as on weekly timeframe is above 50 mark indicating strong momentum in the price.
We recommend traders and investors to buy this stock for the target of Rs 2,300 with a stop-loss of Rs 1,815 on the closing basis.
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