The market reversed some of its previous day's gains and fell third of a percent on January 16, forming bearish candle which, to some extent, resembles Dark Cloud Cover kind of pattern formation on the daily charts indicating weak sentiment at Dalal Street.
The selling pressure was seen in metal, private banks, financial services, and auto stocks, but buying in technology stocks limited losses.
The Nifty50 shed 62 points to 17,895, and the BSE Sensex declined 168 points to 60,093, while the Nifty Midcap 100 index was down 0.24 percent and Smallcap 100 index slipped 0.07 percent.
However, stocks that were in action and bucked the trend included JustDial which saw strong gap up opening and was locked in 10 percent upper circuit at Rs 644.30 and formed long bullish candle on the daily charts with healthy volumes. The stock has given a strong close above 200 DEMA (day exponential moving average - Rs 636) and seen a breakout of downward sloping resistance trend line adjoining November 4, and December 19, 2022, indicating positive mood in the counter.
Adani Green Energy shares rallied 9 percent to Rs 2,089.8, forming robust bullish candle on the daily charts with significantly higher volumes, making higher high higher low for second straight session. The buying interest was so strong that it has given a closing above all major moving averages - 50 DEMA, 100 DEMA and 200 DEMA in a single session. It has seen a breakout of long downward sloping resistance trend line adjoining multiple touchpoints - August 23, September 30, November 9 and December 21, 2022.
Triveni Turbine was also in focus, rising nearly 7 percent to Rs 293, and formed long bullish candle on the daily charts with above average volumes, making higher high higher low for fourth consecutive session. The stock has given a breakout of downward sloping resistance trend line adjoining December 15 and December 22, 2022, and also horizontal resistance trend line adjoining multiple touchpoints - October 18, November 14, November 28, 2022 and January 13, 2023.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Adani Green Energy has shown positive movement, bouncing upward from a key support level at Rs 1,780. The stock also broke out from a falling Wedge pattern, indicating a reversal to the upside.
The breakout is confirmed as it is accompanied by high volumes and a Gap. Additionally, the stock has surpassed its 200-day moving average, further confirming the reversal.
The momentum indicator RSI (relative strength index) on the daily timeframe has witnessed a breakout reflecting strong momentum for upmove.
We recommend traders and investors to buy this stock for the target of Rs 2,500 for the stop-loss of Rs 1,880 strictly on the closing basis.
Just Dial has remained steady since June 20, 2022 without reaching new lows, indicating an improving market trend. Recently, the stock broke out from a Diamond Bottom pattern, suggesting a potential reversal in prices.
The breakout was confirmed by a gap, which can be considered as a breakaway gap. The Bollinger band has opened with High volumes indicating rising volatility for upmove.
Additionally, the daily relative strength index (RSI) has not reached new lows since June 20, further supporting the upward momentum of the stock.
We recommend traders and investors to buy this stock for the target of Rs 720 for the stop-loss of Rs 598 strictly on the closing basis.
Triveni Turbine, around the level of Rs 250, has shown change in the polarity by the prices this shows the rising bullish sentiment of the prices.
On October 3, 2022, the stock broke out from a rectangle pattern, signaling the start of an upward trend.
The stock recently started to climb with rising volumes which tells that the demand is pushing the prices higher.
Prices have sustained well above 18 and 36-day EMA which acted as a strong variable support to the prices.
Additionally, the daily relative strength index (RSI) has also broken out, reflecting a high momentum for an upward trend.
We recommend traders and investors to buy this stock for the target of Rs 340 for the stoploss of Rs 260 strictly on the closing basis.
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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