The market staged a healthy performance in the later part of the session on July 20, the weekly F&O expiry day, with the Nifty50 moving very close to the psychological 20,000 mark, continuing its upward journey for the sixth day in a row.
The benchmark indices ended at a new record closing high and formed a long bullish candlestick pattern on the daily charts. The BSE Sensex jumped 475 points to 67,572, and the Nifty50 climbed nearly 150 points to 19,979, while the broader markets underperformed frontliners as the Nifty Midcap 100 and Smallcap 100 indices gained 0.25 percent and 0.37 percent respectively.
The Bank Nifty was at the leading position, surpassing the 46,000 mark for the first time on Thursday. The index rallied over 500 points to 46,187, while the Nifty IT has seen profit-taking for yet another session, falling over 200 points to 31,146.
Stocks that performed better than broader markets included Alembic Pharmaceuticals, Nippon Life, and Gland Pharma. Alembic Pharma has seen a decisive consolidation breakout and formed a robust bullish candlestick pattern on the daily scale with significantly higher volumes.
Earlier this month, the stock experienced a golden crossover, wherein the 50-day EMA (exponential moving average) crossed above the 200-day EMA. Simultaneously, on the weekly charts, there was a significant breakthrough of a downward-sloping resistance trendline connecting the highs from November 2022 and the prior week.
Nippon Life has seen a breakout of the horizontal resistance trendline adjoining highs of June 30 and July 12 and formed a bullish candlestick pattern on the daily timeframe with above-average volumes. Further, it has also seen a golden crossover this month. The stock rose nearly 5 percent to Rs 311, the highest closing level since August 24 last year.
Gland Pharma gained nearly 4 percent to Rs 1,237 and has been forming higher highs, higher lows since May lows. The stock has formed a bullish candlestick pattern on the daily scale with above-average volumes. Now the stock reached within the big gap down area (Rs 1,315-Rs 1,160) of May 19 and the closing above this gap down area in coming sessions needs to be closely watched.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
The stock has given a breakout of its Ascending Triangle chart pattern with a strong bullish candlestick on the daily scale. Additionally, it has formed a higher bottom formation on weekly charts, hence the structure of the stock indicates the beginning of a new up move from the current levels.
For the traders, Rs 685 would be the key support level to watch out for. Above this, the uptrend structure will continue until Rs 760.
Nippon Life India Asset Management
Post the remarkable up move of the last few weeks, the stock was in a rangebound mode. The consolidation structure of the chart formation indicated the bullish continuation pattern. Therefore the fresh strong breakout move of the stock suggests an uptrend to persist in the near term.
For traders, Rs 300 would act as an important support zone while Rs 335 could be the key resistance area for the short-term traders. However, below Rs 300 levels, the uptrend would be vulnerable.
The counter is trading into a rising channel pattern after reversal from the support zone and forming the higher lows series. The strong momentum on the weekly scale suggests that the counter is likely to maintain a bullish continuation chart formation in the coming horizon.
As long as the stock is trading above Rs 1,190, the bullish formation is likely to continue. Above this, the counter could move up to Rs 1,330. On the flip side, a fresh sell-off is possible only after the dismissal of Rs 1,190. Below the same, the stock could retest the level of Rs 1,150.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
