The market has seen consolidation and rangebound trade on December 28 after a sharp rise in previous couple of sessions. Traders may be cautious ahead of expiry of monthly derivative contracts scheduled on Thursday.
The benchmark indices closed flat with a negative bias. The BSE Sensex fell 17 points to 60,910, while the Nifty50 declined 10 points to 18,122 and formed bullish candle on the daily charts as the closing was higher than opening levels.
The selling in select banks, technology, pharma and metal stocks pulled the benchmark indices into negative territory, while auto and oil & gas stocks supported the sentiment.
Stocks that performed better than benchmarks included Saregama India which jumped more than 7 percent to Rs 395 and formed robust bullish candlestick pattern on the daily charts with strong volumes. The stock has seen a breakout long downward sloping resistance trend line adjoining January 3 and November 11 this year, as well as horizontal resistance trend line adjoining June 29 and December 27, 2022.
Macrotech Developers shares rallied 5 percent to Rs 1,084 and formed strong bullish candle on the daily charts with above average volumes. The stock has seen a breakout of downward sloping resistance trend line adjoining July 28 and December 12 this year.
Bank of Baroda was also in focus, rising more than 2 percent to Rs 182 and formed decent bullish candle on the daily charts, making higher high higher low for second straight session. It has been in an uptrend since the formation of bullish engulfing candlestick pattern on the daily charts on December 26.
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 last 6 months the said counter has been consolidating in the zone of Rs 350-390. Recently on daily scale, Saregama has violated 4 months old trendline (refer to the chart). Also, it has formed bullish AB=CD pattern near Rs 370 level along with daily scale MACD (moving average convergence divergence) displaying bullish divergence near zero line which adding more confirmation for upside.
In previous session, the counter witnessed massive buying interest along with massive volume. One can buy in small tranche at CMP and another around Rs 375 level if tested again. Upside is expected till Rs 365 with a stop-loss of Rs 350.
For the last 4 months, the said counter is making lower highs and lower lows structure. Recently it has started changing its structure by making higher highs and higher lows, and also it broke its trendline (refer to the chart).
At the current juncture, it has sustained above 200 DEMA (day exponential moving average) high low band (refer to the chart).
What is more interesting is that buying volume is picking up from lower levels. In the previous trading session, we witnessed some nice buying interest.
On the indicator front, daily DMI (directional movement index) has given a bullish cross along with daily MACD displays reverse divergence above zero-line hinting upside in the counter.
One can buy in the range of Rs 1,055-1,075, with a target around Rs 1,200 and stop-loss at Rs 996.
From October 2020 till date, Bank Of Baroda has given a whopping return of 378 percent. At the current juncture, Rs 200 is a historical resistance where one can see some profit booking.
On the indicator front, monthly MACD is overstretched along with volume dropping as the price is increasing which is an anomaly according to volume price analysis (refer to the chart).
One can book a profit between Rs 195-200 if already bought. As of now, no fresh longs are advised.
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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