The market in the upcoming sessions is expected to be in a range of around 21,500 to 22,000. According to experts, the breaking of this range on either side can give a firm direction to the market, as if the index decisively breaks 21,500 and then 21,300 can be the possible target on the downside and if the index surpasses and stays above the 22,000 level, then the new record high can't be ruled out.
On February 9, the Nifty 50 rallied 64.5 points to 21,783, and the BSE Sensex was up 167 points at 71,595, while the performance of broader markets was weak as the Nifty Midcap 100 and Smallcap 100 indices fell 0.9 percent and 1.4 percent.
Stocks that traded better than the benchmark indices last Friday included Apollo Hospitals Enterprise, Bharat Forge, and Birla Corporation. Apollo Hospitals Enterprise ended at new closing high of Rs 6,437 on the NSE, rising 3.3 percent and formed long bullish candlestick pattern on the daily charts with strong volumes. Further, the stock has seen a breakout of falling resistance trendline adjoining multiple touchpoints.
Bharat Forge has seen a strong consolidation breakout and gained 2.5 percent to end at record closing high of Rs 1,314. The stock has formed bullish candlestick pattern on the daily scale with above average volumes, while the stock traded above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average).
Birla Corporation, too, ended at new closing high of Rs 1,696, up 6.5 percent and formed long bullish candlestick pattern with upper shadow on the daily charts. The trading volume was very strong and the stock traded above all key moving averages, which is a positive sign.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
The stock is in strong uptrend across all the time frames forming a series of higher tops and bottoms. With January 24 close, the stock has also confirmed "rounding bottom" at Rs 5,935 on a monthly closing basis which reconfirms bullish sentiments.
Huge rising volumes on every rally signifies increased participation. Recently the stock has recaptured its 20-day SMA (Rs 6,157) and rebounded sharply which shows strength on the short term horizon.
The stock is well placed above its 20, 50, 100 and 200 day SMA (simple moving average) and these averages are inching up along with rising prices which reconfirms bullish trend. The daily , weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which shows sustained strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 6,885-7,000, with downside support zone of Rs 6,100-6,090 levels.
On the daily as well on the weekly time frame, the stock has marked a new swing high representing bullish sentiments. With last Friday's close, the stock has witnessed multiple resistance breakout at Rs 1,300 level on a closing basis. This breakout is accompanied with huge volume which shows rising participation.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,385-1,470, with downside support zone of Rs 1,272-1,268 levels.
On the weekly chart, the stock has confirmed a "rounding bottom" formation breakout at Rs 1,630 levels on a closing basis. This breakout is accompanied with huge volumes which signifies increased participation.
The stock is well placed above its 20, 50, 100 and 200 day SMA and these averages are inching up along with rising prices which reconfirms bullish trend. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows sustained strength.
The daily and weekly "Bollinger band" buy signal shows increased momentum on short to medium etrm time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,830-1,985, with downside support zone of Rs 1,595-1,485 levels.
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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