Bulls turned strong after a holiday and pushed the benchmark Nifty50 near one month high on November 15, following positive global trend. Given the decisive breakout of falling resistance trendline with strong volumes and positive trend in RSI (59 levels), the momentum is expected to take the Nifty50 towards 19,850 levels in coming sessions, with support at 19,600-19,500 area, experts said.
On November 15, the Nifty50 jumped 232 points or 1.19 percent, the biggest single day gains in FY24, to 19,676, and formed bullish candlestick pattern with long lower shadow & minor upper shadow on the daily charts, while the BSE Sensex climbed 742 points or 1.14 percent to 65,676.
The broader markets also joined the rally with positive breadth. The Nifty Midcap 100 and Smallcap 100 indices gained 1 percent and 1.32 percent respectively.
Stocks that performed better than broader markets included Welspun India, Eicher Motors, and Yes Bank. Welspun India soared more than 6 percent to Rs 169, the highest closing level since September 30, 2021 and formed strong bullish candlestick pattern on the daily scale with above average volumes, after witnessing falling resistance trendline breakout in previous session. The stock traded well above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average).
Eicher Motors jumped 5.6 percent to Rs 3,848 and formed robust bullish candlestick pattern on the daily charts with strong volumes, after breakout of downward sloping resistance trendline in previous session. The stock traded way above all key moving averages and largely maintained upward trend after a range breakout in previous week.
Yes Bank shares gained nearly 5 percent at Rs 20.35 on the NSE and formed long bullish candlestick pattern on the daily timeframe with strong volumes, continuing strong uptrend for second straight session. The stock remained above all key moving averages and closed at 10-month high.
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:
So far, Welspun India has seen a stellar bull run since March 2023, which is around a 174 percent gain. At the current juncture, it is placed near Rs 170 mark, which is also the October 11, 2021 historical high. Having said that, the current price action is way above all major exponential averages on a daily as well as a weekly scale, which might result in a reversion to the mean (profit booking can be seen).
On the indicator front, weekly DMI (directional movement index) is looking exhausted as the ADX (average directional index) line is placed above both DMI lines. As of now, fresh longs are not advised. Book profit near the historical top of Rs 170.
Since the last couple of weeks, Yes Bank has gained some quick momentum and placed near Rs 20 mark. Recently, it took out its previous swing with huge volume and successfully sustained above it.
On the indicator front, daily DMI and RSI (relative strength index) are hinting at a bullish bias in the counter. Thus, one can buy in the range of Rs 19.5–20.5 for a target of Rs 26 and a stop-loss of Rs 17.5 on a daily close basis.
Though Eicher looks lucrative, one needs to be cautious since it is hovering near its 31-10-2022 high of Rs 3,850. Having said that, the current price action is way above all major exponential averages on a daily scale, which might result in a reversion to the mean (profit booking can be seen).
On the indicator front, the daily RSI looks very heated, near 84 levels, so one can expect some cooling off at the counter. Thus, one can refrain from buying at current market price and wait for meaningful correction.
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