Given the change in market sentiment to bearish in last two consecutive sessions, the Nifty50 may see some more correction up to 18,900, the immediate support area held on Friday-Monday, but in case the index rebounds, then 19,100-19,200 will be the area to watch on the higher side, experts said. On November 1, the Nifty50 declined 90 points to 18,989 and formed bearish candlestick pattern on the daily charts, while the BSE Sensex was down by 284 points to 63,591.
The broader markets ended flat with a negative bias as about three shares declined against two shares increasing on the NSE.
Stocks that were on buyers' radar in the weak market conditions included Zee Entertainment Enterprises, Godfrey Phillips, and Clean Science and Technology. Zee Entertainment Enterprises, after taking support at 200-day EMA (exponential moving average), maintained upward journey for four consecutive sessions with above average volumes on all those days. The stock has seen breakout of downward sloping resistance trendline on Wednesday, rising 3.3 percent to Rs 268 and formed bullish candlestick pattern with upper and lower shadows on the daily charts.
Godfrey Phillips India climbed over 4 percent to Rs 2,361 and formed strong bullish candlestick pattern with minor shadow on the daily scale with above average volumes, continuing its uptrend for the fifth consecutive session. Also, it has seen a V-shape recovery, with trading above all key moving averages (20, 50, 100 and 200-day EMA), which is a positive sign.
After consolidation in the last few sessions, Clean Science and Technology rebounded sharply and formed healthy bullish candlestick pattern on the daily timeframe with above average volumes. The stock rose over 3 percent to Rs 1,345 and reached the long horizontal resistance trendline, which seems to be crucial for further upmove towards the 20-day EMA (Rs 1,356).
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:
At the current juncture, the said counter has a Double Bottom structure exactly near the support level of Rs 1,300. Having said that, since the last 2–3 sessions, it has made a Hammer and Inverted Hammer candlestick structure near the mentioned support zone, which is looking lucrative.
On the indicator front, daily RSI (relative strength index) has reversed from 30 levels, and daily DMI’s (directional movement index) are looking exhausted, which can push the counter to Rs 1,400–1,420 levels in the coming sessions.
One can buy in the zone of Rs 1,340–1,345, with an upside target of Rs 1,420 and a stop-loss of Rs 1,299 on a daily close basis.
Godfrey Phillips is in a well-established uptrend as it is trading above all major daily exponential averages. On the indicator front, the daily RSI has reversed from 40 levels, along with the daily bullish cross on DMI, which is looking attractive.
Thus, one can buy in the range of Rs 2,330–2,350 with an upside target of Rs 2,500 and a stop-loss of Rs 2,260 on a daily close basis.
After making the top Rs 290 on August 10, 2023, it has corrected almost 17 percent. Recently, it has taken support near 200 DEMA (exponential moving average), reversed quite nicely, and is trading above its previous swing of Rs 265.
On the indicator front, daily RSI has made an impulsive structure near the oversold zone of 30 levels. Thus, one can buy in the range of Rs 265-268 with an upside target of Rs 300 and a stop-loss of Rs 251 on a daily close basis.
Note: Impulsive structure on RSI is a “V” shape pattern.
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