The market managed to hold on to the 19,500 mark through the past couple of sessions despite volatility on the Nifty50. Hence, if the said level maintains on a closing basis in the coming sessions, then 19,600-19,800 is possible on the higher side, but the decisively breaking 19,500 level can drag the index towards the low of the current month at 19,300, experts said.
On October 20, the Nifty50 was down 82 points to 19,543 and formed a Doji candlestick pattern on the daily charts, while the BSE Sensex fell 232 points to 65,398.
The selling pressure was also seen in broader markets as the Nifty Midcap 100 and Smallcap 100 indices were down 1.1 percent and 0.8 percent on weak breadth.
Stocks that outperformed the broader markets included Bombay Burmah Trading Corporation, Angel One, and Paytm. Bombay Burmah Trading Corporation hit multi-year high on last Friday, freezing at 20 percent upper circuit at Rs 1,419 on the NSE, with robust volumes. With this rally, the stock traded well above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average), while it has seen breakout of downward sloping resistance trendline, which is a positive sign.
Angel One ended at record closing high of Rs 2,343.5, up 6.5 percent and continued uptrend for fourth consecutive session, forming long bullish candlestick pattern on the daily scale, with strong volumes. On the monthly charts, it has seen breakout of falling resistance trendline adjoining highs of April 2022 and September 2023, and formed robust bullish candlestick pattern with above average volumes.
Paytm rose 2 percent to end at a eight-month high of Rs 988 on last Friday with above average volumes, continuing uptrend for fifth consecutive session. The stock has formed bullish candlestick pattern on the daily timeframe, with trading above all key moving averages.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Bombay Burmah Trading Corporation
On the daily and weekly charts, the stock has now geared up its momentum forming a series of higher tops and bottoms formation. Recently the stock has recaptured its 20-day SMA (simple moving average) and rebounded very sharply showing buying force on short term corrections.
The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish trend. With last week's close, the stock has confirmed "rounding bottom" formation at Rs 1,360 levels. This breakout is accompanied with huge volumes which shows increased participation.
The daily "Bollinger band" buy signal suggests increased momentum on the short term chart. The daily, weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,600-1,755, with downside support zone of Rs 1,300-1,150 levels.
The stock is in strong uptrend across all time frames forming a series of higher tops and higher bottom formation. With last Friday's close, the stock has surpassed its multiple resistance zone of Rs 2,010 levels on a closing basis indicating bullish sentiments.
The past couple of weeks huge volumes signifies increased participation in the rally. The stock is well placed above all its 20, 50, 100 and 200-day SMA and all these averages are also inching up along with price rise which reconfirms bullish trend. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,470-2,600 with downside support zone of Rs 2,190-2,050 levels.
One 97 Communications (Paytm)
The stock is in a bullish trend and making a series of higher tops and bottoms indicating positive bias. With last week's low (Rs 925) the stock has observed a sharp rebound from its prior breakout zone which remains a positive sign. This rally is accompanied with huge volumes which signals increased participation.
The stock is well placed above all its 20, 50, 100 and 200-day SMA and all these averages are also inching up along with price rise which reconfirms bullish trend. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,050-1,150, with downside support zone of Rs 935-925 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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