The market continued to face resistance at the 22,200 level, which is expected to be crucial for the Nifty's further rise. If the index closes and stays above this level for few sessions, then record highs can't be ruled in the coming sessions with support at the 21,900 level, experts said, adding that till then consolidation may rule the market.
On March 27, the benchmark indices recovered all the previous day's losses and closed higher. The Nifty 50 jumped 119 points to 22,124, and the BSE Sensex was up 526 points at 72,996, while the Nifty Midcap 100 index gained 0.06 percent and Smallcap 100 index rose nearly 1 percent.
Stocks that performed much better than the benchmarks as well as broader markets included ABB India, Maruti Suzuki, and Info Edge India. ABB India had a gap-up opening and ended at fresh record closing high of Rs 6,279, up 5.9 percent. The stock has formed a long bullish candlestick pattern on the daily charts with healthy volumes, and traded above all key moving averages, which is a positive sign.
Maruti Suzuki India, too, ended at new closing high of Rs 12,510, up 2.12 percent and formed bullish candlestick pattern on the daily timeframe with above average volumes. The stock remained above all key moving averages since last week.
Info Edge India has seen a decisive breakout of consolidation seen for several weeks and recorded 5 percent rally to Rs 5,476. The stock has formed robust bullish candlestick pattern on the daily charts with significantly higher volumes, while the stock climbed above all key moving averages.
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:
In the recent trading session, ABB India exhibited a significant breakout above the R4 camarilla pivot (Rs 6,111), maintaining its position above this level. Additionally, daily stochastics have ventured into the overbought territory, suggesting a bullish momentum anticipated in the upcoming days.
The combination of price action persisting above the R4 camarilla pivot and stochastics registering as overbought presents a compelling technical confluence, reinforcing the bullish sentiment surrounding ABB India.
Consequently, investors may consider initiating a buy position within the range of Rs 6,200-6,300, targeting an upside potential of Rs 6,965, while prudently placing a stop-loss near Rs 5,900 based on daily closing prices.
During the recent trading session, Info Edge India experienced a notable surge, garnering attention from investors and traders. However, amidst this intraday upswing, the stock encountered a significant barrier around Rs 5,550 mark, leading to a subsequent pullback.
Interestingly, this level aligns with Info Edge's previous peak recorded on February 12, 2024. Moreover, it coincides with the R4 camarilla resistance zone (Rs 5,550), indicating a formidable obstacle at present.
Given these observations, traders and investors are cautioned against initiating long positions and are advised to exercise patience, awaiting meaningful corrections before considering any further actions.
On March 22, Maruti demonstrated a noteworthy breakthrough above the R4 camarilla pivot (Rs 12,122), as indicated in the chart, and has since maintained its position above this level, currently hovering near Rs 12,500 mark.
Furthermore, daily stochastics have entered the overbought zone, implying a bullish momentum expected in the forthcoming days. This alignment of price action persisting above the R4 camarilla pivot alongside stochastics indicating overbought conditions presents a compelling technical confluence, underscoring the bullish sentiment surrounding Maruti.
As a result, investors might contemplate initiating a buy position within the range of Rs 12,400-12,500, with a target upside potential of Rs 13,000. It is advisable to exercise caution by prudently placing a stop-loss near Rs 12,100 based on daily closing prices.
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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