December 6 was yet another day of consolidation for the market, especially ahead of the major event of interest rate decision by the Monetary Policy Committee of the Reserve Bank of India on Wednesday.
The Nifty50 has taken a good support not only at 18,500 but also at 18,600 levels, which are expected to act as support levels in coming days, while the recent swing high is expected to be key resistance area followed by 19,000 mark, experts said.
The Nifty50 fell nearly 60 points to 18,643 and formed bullish candle on the daily charts as the closing was higher than opening levels, while the BSE Sensex dropped over 200 points to 62,626.
The broader markets also corrected in line with benchmarks. The Nifty Midcap 100 and Smallcap 100 indices declined half a percent and 0.2 percent respectively.
Stocks that were in action included Suzlon Energy which rose 2 percent to close at three-month high of Rs 10.20 and formed Shooting Star kind of pattern on the daily charts with above average volumes, making higher highs higher lows for second straight session.
IDBI Bank shares rallied 8 percent to Rs 58.70, the highest closing level since October 18, 2021 and formed strong bullish candle on the daily charts with significantly higher volumes, making higher highs higher lows for third consecutive session. The stock has seen a breakout of long downward sloping resistance trend line adjoining October 18, 2021, November 29, 2022, and December 5, 2022.
Yes Bank was also in action, rising third of a percent to Rs 17.50, the highest closing level since September 12 this year and formed bullish candle on the daily charts with above average volumes. It has seen a breakout of downward sloping resistance trendline adjoining September 9 and November 28 this year.
Here's what Ruchit Jain of 5paisa.com recommends investors should do with these stocks when the market resumes trading today:
The stock has traded within a broad range of Rs 15-18 in last few weeks. The lower end of the support is around its 200-day EMA (exponential moving average), while the short term trend is sideways.
Prices need a breakout above the resistance of Rs 18-18.50 for any short term uptrend. While traders are advised to avoid fresh buying in the counter, existing shareholders can look to hold with a stop-loss below the mentioned support range.
The stock has recently been forming a ‘Higher Top Higher Bottom’ structure and is this in an uptrend. The volumes in the recent upmove are good which indicates a buying interest in the stock.
The RSI (relative strength index) oscillator is hinting at a positive momentum and the prices seem to be heading towards the October 2021 swing highs of Rs 65.
Hence, traders are advised to trade with a positive bias. The immediate support for the stock is placed around Rs 52.
The stock has recently witnessed a buying interest and has given a breakout from a Symmetrical Triangle pattern. The breakout has been support by good volumes which is a positive sign.
Hence, the short term trend is positive for the stock and traders with existing long positions can continue to ride the trend.
The immediate support for the stock will now be seen in the range of Rs 9-8.50 while the resistances are expected around Rs 11.50 followed by Rs 14.
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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