The market reacted to weak global cues and opened sharply lower, but immediately showed strong recovery in morning itself and traded rangebound in rest of session. The benchmark indices closed flat as traders remained cautious ahead of FOMC meet and US inflation numbers.
The BSE Sensex fell more than 50 points to 62,130, and the Nifty ended almost flat at 18,497, but formed bullish candle on the daily charts as the closing was higher than opening levels, with taking support at 18,300-18,400 levels.
The broader markets traded higher with the Nifty Midcap 100 and Smallcap 100 indices rising 0.36 percent and 0.55 percent respectively, while the volatility index India VIX fell by 1.2 percent to 13.32 levels.
Stocks that were in action and performed better than broader markets included Rallis India which gained nearly 4 percent to Rs 264, the highest closing level since April 21 this year. The stock has formed bullish Engulfing candlestick pattern on the daily charts and has largely been in a northward journey barring intermittent correction especially since the break out of long downward sloping resistance trend line adjoining June 18, 2021 and April 19, 2022, on November 23.
Redington shares rallied nearly 6 percent to end at record closing high of Rs 199.4 and formed long bullish candle on the daily charts with above average volumes. It has been making higher highs for sixth consecutive session on the daily charts, while there has been higher highs higher lows for fifth week in a row on weekly charts.
Yes Bank remained in focus, rising 7 percent to Rs 21.1, the highest closing level since July 13, 2020. It has seen another large bullish candle on the daily charts with robust volumes, especially after decisively breaking out long horizontal resistance trend line adjoining August 2, December 2 and December 6 this year.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
By looking at the broader picture of Rallis, we can observe that the stock has given a breakout of downward slopping channel pattern which has been forming since June 2021 which tells a bullish undertone of the stock.
On the daily charts, the stock has given a Cup & Handle pattern breakout few days back with volume confirmation.
The stock has maintained higher top higher bottom formation on all the time frames like daily, weekly and monthly time frames.
The prices have sustained well above upper Bollinger band indicating rising volatility for an up move.
RSI (relative strength index) on the Weekly timeframe have shown breakout too, this reflecting the strong momentum built-up.
We recommend investors and trader to buy this stock for the target of Rs 324 where the stop-loss must be Rs 235 on the closing basis.
Yes Bank has surpassed its previous multi-year resistance level of Rs 19.45 (December 2020), which negates the lower low, lower high formation, Indicating reversal from prior downtrend.
The stock in the latest trading session has given a breakout of rounding bottom pattern which suggest beginning of the trend to the upside.
The breakout is confirmed as it is accompanied by higher volumes.
The stock is sustaining above 100-day SMA (simple moving average) which confirms the reversal to the upside from prior downtrend.
RSI on the Weekly timeframe is quoting at the highest level since September 2017 which shows that the prices have strong momentum in it.
We recommend traders and investors to buy this stock for the target of Rs 32 where the stop-loss must be Rs 17 on the closing basis.
Redington has started to get into higher high, higher low formation which points towards the positive undertone of the stock.
Prices in the last week of November 2022 had given a breakout at Life time high level and since then it has been continuously making fresh life time highs every week indicating strong bullish sentiments of the stock.
The current Uptrend is followed by rise in the volumes which shows the long built up behind the prices.
On the daily charts, the Prices have sustained well above Upper Bollinger band pointing Rising Volatility for an up move.
RSI on the Daily timeframe have shown a range shift which reflects the rising momentum in the prices.
We recommend traders and investors to buy this stock for the target of Rs 245 where the stop-loss must be Rs 170 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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