The Nifty50 has formed a base at 19,300 since the start of this week and has been trying to take out 50-day EMA (exponential moving average) at 19,450. If the index gives strong close above 19,450, then 19,550-19,600 is likely to be seen, with a support at 19,300, experts said. Given the indecisiveness among buyers and sellers in the past two sessions, the next couple of sessions are important to watch out for.
On November 8, the Nifty50 ended the rangebound session on a positive note, rising 37 points to 19,444, and the BSE Sensex rose 33 points to 64,976, while the Nifty Midcap 100 and Smallcap 100 indices gained 1 percent and 0.7 percent, respectively.
Stocks that were in action and outperformed the broader markets included Poonawalla Fincorp, Hindustan Petroleum Corporation, and Alkem Laboratories. Poonawalla Fincorp continued its healthy uptrend for yet another session, rising 7 percent to Rs 389 and formed robust bullish candlestick pattern on the daily charts, with strong volumes, after breaking out falling resistance trendline. With the two-day sharp rally, the stock traded above all key moving averages (20, 50, 100 and 200-day EMA), which is a positive sign.
Hindustan Petroleum Corporation has seen a good upward journey in the last couple of weeks and reached its highest level since July 26. The stock jumped 7.5 percent to Rs 299.50 and formed yet another strong bullish candlestick pattern on the daily scale with robust volumes. The stock traded far above all key moving averages.
Alkem Laboratories also formed robust bullish candlestick pattern on the daily charts with strong volumes for the second consecutive session. The stock jumped 5 percent to end at record closing high of Rs 4,233, and traded far above all key moving averages.
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:
After making the top of Rs 450, it has corrected almost 23 percent. At the current juncture, it has made a solid base near 200 DEMA (exponential moving average) (refer to the chart).
Additionally, the bearish trendline has been taken out, which is a sign of bullish bias on the counter.
On a daily scale, DMI (directional movement index) has almost turned positive. One can buy in the small tranche around Rs 385–390 and another between Rs 360 and 370, with an upside target of Rs 430 and a stop-loss of Rs 355 on a daily close basis.
Since the last eight trading sessions, the said counter has already seen a fabulous rally of almost 19 percent. Having said that, in the previous trading session, it tested the high of August 10 (Rs 4,243) but failed to close above it.
Thus, in the coming few sessions, we see some cool off at the counter, as it is way above all major key averages. One can book profit in the zone of Rs 4,200–4,300 and wait for meaningful corrections at the counter.
Hindustan Petroleum Corporation
Since the last four trading sessions, the said counter has already seen a fabulous rally of almost 15 percent. At the current juncture, it is near its previous highs of Rs 310, which might be difficult to cross until any reasonable correction.
Thus, in the coming few sessions, we see some cool off at the counter, as it is way above all major key averages. One can book profit in the zone of Rs 300–310 and wait for a reasonable correction at the counter.
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