The market has seen consolidation within a range of 100 points on the Nifty50 and finally settled flat with a negative bias on January 11 as traders looked cautious ahead of the retail inflation data scheduled to be announced today.
The BSE Sensex declined 10 points to close at 60,105, while the Nifty50 fell 18 points to end tad below 17,900 mark and formed small bodied bearish candle on the daily charts.
The broader markets also followed similar kind of trend with the Nifty Midcap 100 and Smallcap 100 indices falling 0.32 percent and 0.05 percent respectively, but Bank Nifty bucked the trend, rising half a percent to close above 42,200 level.
Stocks that were in action and outperformed the broader markets included Max Financial Services which was the third biggest gainer in futures and options segment, rising 3.7 percent to Rs 799, the highest closing level since September 22, 2022 and formed long bullish candle on the daily charts with above average volumes, making higher high higher low for second straight session. The stock has seen a breakout of horizontal resistance trend line adjoining September 29, 2022 and January 10, 2023.
Oil India shares rallied more than 4 percent to Rs 222.85, the highest closing level since June 30, 2022 and formed strong bullish candle on the daily charts with healthy volumes, making higher high higher low for fourth consecutive session. The stock has seen a decisive breakout of horizontal resistance trend line adjoining December 14, 2022 and January 2, 2023 and also broke small downward sloping resistance trend line adjoining December 15, 2022 and January 2, 2023.
Hindustan Petroleum Corporation was also in focus, rising nearly 3 percent to Rs 256.5, the highest closing level since August 19, 2022 and formed long bullish candle on the daily charts with strong volumes, making higher high higher low formation. The stock has seen a decisive breakout of horizontal resistance trend line adjoining September 13 and December 12, 2022, and also there was a breakout of downward sloping resistance trend line adjoining August 18, 2022, January 6, and January 9, 2023.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Since the last four months, the said counter has been making higher highs and higher lows structure. Recently it broke its previous swing high of Rs 218.60 along with the four-month-old trendline is maintained and currently is sustaining above it 200 DEMA (day exponential moving average) thus hinting upside in the counter.
On the indicator front, daily DMI (directional movement index) is in bullish mode and also it broke its previous swing thus indicating bullishness in the counter. Also, daily MACD (moving average convergence divergence) has made bullish cross above zero line thus giving extra confirmation for upside in the said counter (refer to the chart).
One can buy in small tranches around Rs 221-224 and another around Rs 216-218, with a target at around Rs 250 and stop-loss at Rs 205.
Recently MFSL has broken its historical resistance of Rs 740 and comfortably it is sustaining above 200 DEMA (refer to the chart). Additionally, one year old trendline is violated thus confirming its early reversal.
On indicator front, daily MACD and DMI are in displaying bulllish structure thus confirming bullishness in coming sessions. One can buy around Rs 790-800 levels with a target of Rs 900 and stop-loss at Rs 750.
Hindustan Petroleum Corporation
Since the last three months, the said counter has been making higher highs and higher lows structure. Recently it broke its previous swing high of Rs 253 along with the 14-month-old trendline is violated and currently is sustaining above it 200 DEMA thus hinting upside in the counter.
On the indicator front, daily DMI is in bullish mode and also it broke its previous swing thus indicating bullishness in the counter. Also, daily MACD has made bullish cross above zero line thus giving extra confirmation for upside in the said counter (refer to the chart).
One can buy in small tranches around Rs 257-259 and another around Rs 250-252. Target is expected at around Rs 285 and stop-loss would be Rs 245.
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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