The market lost momentum on May 5 after a day of strong rally, and fell over a percent lower, largely due to selling pressure in banking and financial services following sharp correction in the HDFC twins.
The BSE Sensex tanked 695 points or 1.13 percent to 61,054, while the Nifty50 plunged 187 points or 1.02 percent to 18,069 and formed a bearish candlestick pattern with long upper shadow on the daily charts indicating profit-booking and selling pressure at higher levels.
Nifty Bank and Nifty Financial Services were major losers among sectors, falling 2.34 percent each, while the broader markets, too, were under pressure with the Nifty Midcap 100 and Smallcap 100 indices declining 0.7 percent and 0.8 percent respectively.
Stocks that were in action included Hitachi Energy India which rallied 7.6 percent to settle at Rs 3,730 on the NSE and formed robust bullish candlestick pattern on the daily charts with strong volumes. The stock has seen higher high higher low formation, and has largely been in an uptrend after forming bottom on April 19, with intermittent correction and consolidation.
Engineers India shares rallied over 6 percent to hit a multi-year high Rs 97.5 and formed bullish candlestick pattern on the daily scale with good volumes. The stock has seen higher tops, higher bottoms formation for second consecutive session.
TVS Motor Company was also in focus, rising 4 percent to end at record closing high of Rs 1,215, and formed bullish candlestick pattern on the daily timeframe, with making higher highs higher lows formation for second straight day, but the higher lows formation continued for nine days in a row.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
The stock has decisively broken out its three-year's consolidation zone (Rs 93-55) on a weekly closing basis. This price action also resembles an "Inverse Head & Shoulder" which confirms trend reversal. This breakout is also accompanied with huge volumes which signals increased participation in the rally.
The stock has recaptured its 200-day SMA (simple moving average) and rebounded sharply indicating strong comeback of bulls.
The daily, weekly, monthly strength indicator RSI (relative strength index) is in positive terrain which signals rising strength across all the time frames. The weekly and monthly "Bollinger Band" buy signal shows increased momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 120-140 with downside support zone of Rs 80-70 levels.
Since January 2022, the stock has been consolidating within Rs 3,800-2,800 levels, however with last week's strong price and volume action, the stock gained upside momentum. This buying momentum was observed from the 20, 50, 100 and 200-day SMA which remains a crucial support zone.
The daily and weekly "Bollinger Band" buy signal shows increased momentum. On the daily time frame, the stock has confirmed "triangular" breakout along with huge volumes indicating increased participation.
The daily, weekly, monthly strength indicator RSI is in positive terrain which signals rising strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 4,050-4,350 with downside support zone of Rs 3,480-3,285 levels.
Since October 2022, the stock has been consolidating within Rs 1,180-970 levels, however with current week's strong up move, the stock has confirmed this "consolidation" breakout on a weekly closing basis. This breakout is also accompanied with huge volumes indicating increased participation on breakout.
The stock is well placed above its 20,50, 100 and 200-day SMA which reconfirms bullish trend.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,350-1,400 with downside support zone of Rs 1,130-1,100 levels.
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