The market remained directionless for yet another session, though it snapped three-day losing streak on April 20, the weekly F&O expiry day. The Nifty50 continued to defend 17,600 mark, which coincides with 200-day moving average, and closed 6 points higher at 17,624.50, while the trading volume dropped a bit compared to previous session.
The index has formed Doji kind of candlestick pattern on the daily timeframe, indicating the tug of war between bulls and bears for trend.
The BSE Sensex climbed 64.5 points to 59,632, while the broader markets also traded in line with benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices closed flat with a positive bias.
The Bank Nifty performed relatively better than broader markets, rising 115 points to 42,270.
Stocks that were in action included Cummins India, and JSW Energy which were amongst the top three gainers in the BSE 200 index.
Cummins India clocked 4 percent rally to close at Rs 1,560 and formed long bullish candlestick pattern on the daily timeframe, getting decisively above the gap down of April 17, with above average volumes.
JSW Energy rose 4.6 percent to Rs 259.5, the highest closing level since March 10 and formed long bullish candle on the daily scale huge volumes after a week of consolidation, which is a good sign. The stock has formed higher highs for fourth straight session.
Indigo Paints has seen a decisive breakout of couple of weeks' of consolidation and formed bullish candle with long upper shadow, indicating some kind of profit taking at higher levels. The stock settled 6 percent higher at Rs 1,136, with robust volumes.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
From last couple of weeks, the stock had been in a downtrend. Therefore, it is currently into an oversold territory and reversed from its demand area. The texture of the chart formation and technical indicator RSI (relative strength index) is indicating the current reversal formation could lead to a new leg of the uptrend from its demand zone.
In the near term, Rs 1,500 would be the immediate support zone for the stock. Above the same, the upward rally could continue towards Rs 1,670 level.
After the long-term correction in the counter from the higher levels, the downward momentum has taken a pause. On the daily and weekly charts, the counter has formed a rounding bottom chart formation along with decent volume activity and it has reversed its trend from its support zone.
The formation suggests a revival of the uptrend from the current levels for further bullish movement. For the traders, Rs 1,100 would be the key support level to watch out. Above which the uptrend structure should continue until Rs 1,220.
The stock has given a breakout of its Symmetrical Triangle chart pattern with a strong bullish candlestick. Additionally, on the daily charts, it has formed a higher bottom formation, hence the structure of the stock indicates further bullish momentum from the current levels.
For positional traders, Rs 250 would be the trend decider level. Trading above the same uptrend formation will continue till Rs 280. However, if it close below Rs 250, traders may prefer to exit from trading long positions.
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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