The market snapped a three-day losing streak on the Nifty50 as bulls managed to win the battle with bears on January 30, but market participants maintained a state of caution ahead of the Union Budget and FOMC meet scheduled for February 1.
The BSE Sensex climbed 170 points to 59,500, while the Nifty50 gained 45 points to close at 17,649, after smartly defending 50 WEMA (weekly exponential moving average - 17,400) and 200 DEMA (daily exponential moving average 17,550), which both are expected to act as crucial support area for the index going forward.
The broader markets closed with moderate losses as breadth was in favour of bears. The Nifty Midcap 100 index was down 0.2 percent and Smallcap 100 index fell 0.1 percent.
Stocks that were in action and performed better than broader markets included Aegis Logistics which was the biggest gainer in Nifty500 index, climbing nearly 12 percent to Rs 374, the highest closing level since July 9, 2021 and formed robust bullish candle on the daily charts with robust volumes. The stock has seen a breakout of long downward sloping resistance trendline adjoining highs of June 11, 2021, and December 16, 2022.
Mahindra CIE Automotive was the fourth gainer in Nifty500 index, rising nearly 7 percent to end at record closing high of Rs 385 and formed long bullish candle on the daily charts which resembles Bullish Engulfing kind of pattern formation.
Coforge was also in action, closing with 3 percent gains at Rs 4,419, the highest closing level since April 6, 2022 and formed long bullish candle on the daily charts with higher high higher low formation, with above average volumes. The stock has been trading above all important moving averages (9, 21, 50, 100 and 200 DEMA).
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Mahindra CIE is currently trading at its life-High which tells that the stock already is in strong momentum.
The stock has shown a bounce to the upside after testing the neckline of Inverse Head & Shoulder Pattern. The breakout was witnessed in the first week of January 2023.
Additionally, the Bollinger Band on the daily chart is expanding, indicating increased price volatility for further upward movement.
The momentum indicator RSI (relative strength index) has managed to sustain above 50 mark which reflects the presence of momentum for potential up move.
We recommend traders and investors to buy this stock for the target of Rs 440 where the stop-loss must be Rs 340 on the closing basis.
Post the correction from January 2022 the stock now has started to get into higher high, higher low formation, this indicates reversal to the upside.
Recently, the stock broke out from a Rounding Bottom pattern, suggesting a potential reversal in prices.
The breakout was confirmed as it is accompanied by higher volumes.
The stock recently witnessed a golden crossover of 50 & 200-day EMA, which is indicates a potential bullish trend.
Additionally, the daily relative strength index (RSI) is rising with the trend and has sustained well above the 60 mark reflects the strong momentum in the underlying.
We recommend traders and investors to buy this stock for the target of Rs 4,850 for the stop-loss of Rs 4,220 strictly on the closing basis.
Aegis Logistics is in a clear uptrend while maintaining higher high, higher low formation which illustrates the intact Uptrend, while respecting the Bullish trend line since July 2022.
The stock in the latest trading session has given a breakout of the Double bottom pattern which points towards the beginning of the trend to the upside.
The 50-day exponential moving average is serving as a proxy to the trend line and a variable support level for stock prices, as evidenced by recent upward price bounces.
Additionally, the daily relative strength index (RSI) has also broken out while showing a Bullish reversal this reflects the rising momentum of the prices.
We recommend traders and investors to buy this stock for the target of Rs 430 for the stop-loss of Rs 350 strictly on the closing basis.
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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