The market remained volatile for the major part of the session and settled with moderate gains on Tuesday after a sharp rally in the previous four consecutive sessions. The benchmark indices continued the uptrend for the fifth straight day, driven by select banks, auto and FMCG stocks, whereas the selling was seen in technology, select financial services, and metal stocks.
The BSE Sensex gained 21 points to close at 58,136, while the Nifty50 rose 5.5 points to 17,345 and formed a bullish candle which somewhat resembles Doji kind of indecisive formation on the daily charts.
We have seen consistent outperformance in the broader space over benchmarks on positive breadth. The Nifty Midcap 100 index gained third of a percent and Smallcap 100 index rose seven-tenth of a percent as about five shares advanced against four declining shares on the NSE.
But the rising volatility ahead of the beginning of three-day Monetary Policy Committee is a bit of concern. India VIX, the fear concern rose by 5.97 percent to 18.53 levels, continuing sharp uptrend for second consecutive session.
Stocks that were in action included Nazara Technologies which surged 10.5 percent to Rs 702.60, the highest closing level since May 6 and formed large bullish candle on the daily charts for second consecutive day with robust volumes. In fact, there was a big break out of long downward sloping trend line (adjoining October 11, 2021 and June 29, 2022) in previous session and since then there was a healthy rally in the counter.
Indigo Paints was another strong counter on Tuesday, rising 10 percent to Rs 1,549.45 and recouped several sessions of losses in a single day with the formation of a robust bullish candlestick pattern. This stock, too, has given a break out of long downward sloping trend lines (adjoining February 3, 2021 to June 3, 2022, and September 24, 2021 to June 3, 2022).
Yes Bank rallied 12.5 percent to close at Rs 17.15, the highest closing level since January 21, 2021 and formed large bullish candlestick pattern on the daily charts with robust volumes. The big horizontal trend line indicated that most of times, the stock has taken a support at around Rs 12.
Here's what Ruchit Jain of 5paisa recommends investors should do with these stocks when the market resumes trading today:.
The stock had seen a sharp correction along with the broader markets since the month of October. However, the stock has witnessed buying interest in last couple of sessions and has seen a sharp pullback. The pullback move is supported by high volumes which is a positive sign.
However, the upmove should be seen as a pullback until we see the stock surpasses its crucial near term hurdles. In the short term, the pullback move could extend towards its ‘200-day EMA’ (exponential moving average) which is seen around Rs 800 which will also be the 38.2 percent retracement of the recent corrective phase.
The immediate support for the stock on any declines are placed around Rs 645 followed by Rs 600.
The stock has corrected sharply post its listing and has also underperformed many of its peers in this period. The paint stocks have witnessed some up move recently as the Crude Prices have corrected and this stock too saw a sharp surge on Tuesday.
However, a confirmation in form of a ‘Higher Top Higher Bottom’ is required for a change of trend and till then, this upmove should just be a pullback.
The resistance for the stock will be seen around Rs 1,770 where short term traders can look to lighten up longs. The immediate support for the stock is placed around Rs 1,400.
The stock witnessed a sharp upmove in Tuesday's session on back of some new developments. After a long underperformance, prices have finally given a breakout from its immediate short term resistance which was placed around Rs 16-16.20. The stock has witnessed huge buying interest which can be seen through its high volumes.
Technically, the next resistances for the stock will be seen around Rs 18.50 followed by Rs 20.70. The momentum readings have reached the overbought zone and hence, up move towards the above mentioned resistance could witness profit booking by traders which have bought at lower levels.
Traders are advised to follow proper stop-loss and ride the up move. The support for the stock will now be seen in the range of Rs 15-15.50.
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