Indian equities remained largely volatile on August 18, but reversed losses towards the fag end of the trading session which helped benchmark indices to extend the uptrend for eighth consecutive session led by banking and financial services stocks.
The BSE Sensex settled 38 points higher at 60,298, while the Nifty50 added 12 points to end the session at 17,956.5. The Nifty Midcap 100 and Smallcap 100 indices climbed 0.2 percent each.
The volatility index India VIX fell 1.85 percent to 17.35 levels, making bulls more comfortable to support the market.
Stocks that were in action and ran ahead of frontliners as well as broader markets included India Cements which was the second biggest gainer in the futures & options segment. The stock rose 5.3 percent to Rs 204 and formed large bullish candlestick pattern on the daily charts with robust volumes. Notably, it has broken long down sloping resistance trend line adjoining previous swing highs (January 14 and April 11), whereas it also respected its support trend line (adjoining June 20 and July 6).
KRBL also gained 5.5 percent to close at Rs 288.50, its highest closing level since November 8, 2021. The stock formed robust bullish candlestick pattern on the daily charts with strong volumes. Exactly in last one week, it has broken long downward sloping resistance trend line (adjoining October 14, 2021 and July 20, 2022) as well as horizontal resistance trend line (adjoining January 5 and July 20), and remained in upward direction.
Bajaj Electricals shares rallied 6 percent to close at seven-month high of Rs 1,226.15 and have broken a long downward sloping resistance trend line (adjoining September 17, 2021 and August 8, 2022) with long bullish candlestick pattern formation along with strong volumes on the daily charts. Also it has given a Flag and Pole breakout on the daily charts, which is generally a positive indication.
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 30 percent. On last Thursday, the stock rallied over 5 percent and formed long bullish candle on daily charts. A strong price volume formation indicating further uptrend from the current levels.
For the trend following traders now, Rs 280 could be the key level to watch. If stock manages to trade above the same then we can expect uptrend continuation wave up to Rs 300-315. However, below Rs 280 uptrend would be vulnerable.
After a promising uptrend rally, the stock witnessed narrow range activity. On last Thursday, the stock not only cleared the short term resistance of Rs 200 but succeeded to close above the same.
On daily chart, it has formed robust range breakout formation. A promising price volume breakout texture is indicating continuation of uptrend in the near future.
For the breakout traders, Rs 200 and Rs 198 would be the key levels to watch out. The overall chart structure suggests, if the stock sustains above the same then breakout continuation texture likely to continue up to Rs 210-215.
On last Thursday, the stock rallied over 6 percent. On daily charts, it has formed strong price volume breakout formation. It also formed long bullish candle on daily and weekly charts.
We are of the view that, the stock successfully clears the resistance of Rs 1,200 and after a long time it succeeded to close above Rs 1,200 mark.
Technically, as long as it is trading above Rs 1,200, the uptrend wave is likely to continue. Above which, it could move up to Rs 1,270-1,300. On the flip side, traders may prefer to exit from the trading long positions, if it succeeds to trade below Rs 1,190.
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