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Trade Spotlight | What should you do with Wonderla Holidays, DCB Bank, Poonawalla Fincorp on Monday?

DCB Bank share price surged 9.5 percent to nearly Rs 98 and has seen formation of robust bullish candlestick pattern on the daily charts with high volumes after giving a break out of long downward sloping resistance trend line in previous session, adjoining January 6, 2021 and July 29, 2022. The stock continued its run up for fourth consecutive session.

August 29, 2022 / 06:09 AM IST
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The market continued to consolidate for the fourth consecutive session on August 26 amid weak global cues with Federal Reserve Chair Jerome Powell warning of some pain for consumers and businesses while continuing rate hikes going ahead to bring inflation at a 2 percent target. The rising oil prices also weighed on the sentiment and capped gains.

The BSE Sensex rose 59 points to 58,834, and the Nifty50 gained 36 points at 17,559, while the broader markets outperformed the frontline indices with positive breadth. The Nifty Midcap 100 and Smallcap 100 indices gained 0.55 percent and 0.7 percent.

We have selected three stocks that were in action and reported better performance than broader markets. Wonderla Holidays rallied 12 percent to Rs 378 and formed large bullish candle on the daily charts with above average volumes. It has given a close above previous swing high on last Friday, and showed a break out of long downward sloping resistance trend line adjoining January 19, 2018 and August 16, 2022.

DCB Bank share price surged 9.5 percent to nearly Rs 98 and has seen the formation of a robust bullish candlestick pattern on the daily charts with high volumes after giving a break out of long downward sloping resistance trend line in previous session, adjoining January 6, 2021 and July 29, 2022. The stock continued its run up for fourth consecutive session.

Poonawalla Fincorp climbed nearly 6 percent to Rs 303.75, the highest closing level since April 29, and formed bullish candle on the daily charts with large volumes.

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Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:

Wonderla Holidays

The stock is trending higher forming a series of higher tops and bottoms across all the time frames. With Friday's up move the stock has confirmed "Flag" formation breakout (a continuation pattern) on a cloning basis. This breakout is accompanied with huge volumes indicating increased participation.

The stock is well placed above its 20, 50, 100 and 200 days simple moving averages (SMA) which reconfirms bullish sentiments.

The daily weekly and monthly strength indicator relative strength index (RSI) is in bullish mode which signifies rising strength. The weekly and monthly "band Bollinger" buy signals indicate increased momentum.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 410-430, with downside support zone of Rs 350-330 levels.

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DCB Bank

On the daily and weekly time frame, the stock has observed a shift of trend as it has confirmed higher tops and bottoms formation. With last week's price correction, the stock has recaptured its 20, 50, 100 and 200 days SMA and rebounded very sharply.

In addition to this, the stock has also witnessed one year "down sloping channel" formation indicating positive sign. The daily weekly and monthly strength indicator RSI is in bullish mode which signifies rising strength.

The daily and weekly "band Bollinger" buy signals shows increased momentum on short to medium tern time frame.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 110-120, with downside support zone of Rs 90-85 levels.

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Poonawalla Fincorp

The stock is trending higher forming a series of higher tops and bottoms on the daily and weekly time frame. The stock is well placed above 20, 50, 100 and 200 days SMA which reconfirms bullish trend. Rising volumes on a rally signals increased participation.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 330-345, with downside support zone of Rs 285-280 levels.

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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.
Sunil Shankar Matkar
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