The market reversed all its previous day's gains due to profit booking in later part of session and closed with half a percent losses on March 23. The weak global cues, and selling in banking & financial services and technology stocks dragged the Nifty50 below 17,100.
The index fell 75 points to 17,077, and formed Tweezer Top kind of pattern on the daily charts as the intraday high of both candlesticks (March 22-23) are almost similar, which is a bearish reversal pattern.
The BSE Sensex dropped 289 points to 57,925, while the Nifty Midcap 100 and Smallcap 100 indices declined 0.4 percent each.
Stocks that outperformed the broader markets included Aegis Logistics which rallied 6 percent to end at record closing high of Rs 394, forming strong bullish candlestick pattern on the daily charts with healthy volumes. The stock has been making higher highs higher lows for second straight session, especially after formation of Bullish Harami kind of pattern on March 21.
Triveni Turbine shares climbed 4.5 percent to Rs 315 and formed long bullish candle on the daily timeframe with making higher high higher low formation. The stock traded above all key moving averages (9, 21, 50, 100 and 200-day EMA - exponential moving average).
APL Apollo Tubes has formed robust bullish candle which resembles Bullish Engulfing kind of pattern formation on the daily scale, with trading above all key moving averages. The stock rose 4.6 percent to Rs 1,244 on the NSE.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
On the daily scale, the stock is trading into a rising channel chart formation making the higher top and higher bottom constantly. As a result, all major technical trend indicators such as MACD (moving average convergence divergence) and ADX (average directional index) are strong and steady.
Therefore, upward movement from the current level is very likely to continue in the coming horizon. For positional traders, Rs 378 would be the trend decider level.
Trading above the same uptrend formation would continue till Rs 420. However, if it closes below Rs 378 traders may prefer to exit from trading long positions.
After the short-term correction in the counter from the higher levels, the downward momentum has taken a pause. On the daily 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 300 would be the key support level to watch out. Above which the uptrend structure should continue until Rs 335.
Post remarkable up move of the last few months, the stock was seen consolidating in a range and currently, it has rebounded from the lower boundary of the range.
The structure suggests reversal of trend and bullish strength for a fresh up move from the current levels. Unless it is trading below Rs 1,195 levels, positional traders can retain an optimistic stance and look for a target of Rs 1,330.
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