The Nifty50 has maintained the 19,600-19,700 levels through the past several sessions and faced significant hurdle in the 19,850-19,900 zone. Hence, these levels can act as a support and resistance for the index, respectively, in the coming days. Breach on either side of this range can give a direction to the index, experts said, adding that 20,000 can be possible if it sees a breakout of hurdle, but breakdown of support can drag it down to the 19,300 mark.
On November 24, the day before a long weekend, the Nifty50 fell 7 points to 19,795 and formed a small bearish candlestick pattern with upper and lower shadows on the daily charts, while the BSE Sensex was down 48 points at 65,970.
On the broader markets front, the Nifty Midcap 100 and Smallcap 100 indices gained 0.06 percent and 0.3 percent, respectively.
Stocks that recorded strong performance on last Friday included Data Patterns (India), BHEL, and New India Assurance Company. Data Patterns reported nearly 7 percent rally to close at Rs 1,980 and formed strong bullish candlestick pattern on the daily scale with healthy volumes, after consolidation for couple of weeks. With a single day rally, the stock, which already above 200-day EMA, moved above other key moving averages (20, 50 and 100-day EMA - exponential moving averages) as well.
BHEL has taken out its previous swing high of Rs 149 and rose 6.65 percent to Rs 152, the highest closing level since August 28, 2015. The stock has formed long bullish candlestick pattern on the daily scale with robust volumes and traded well above all key moving averages. It has also seen a breakout of long downward sloping resistance trendline adjoining highs of October 7, 2010 and September 11 this year.
New India Assurance Company was locked in 20 percent upper circuit at Rs 209, the highest closing level since November 16, 2018, and formed robust bullish candlestick pattern on the daily charts with significantly higher volumes. It also traded way above all key moving averages. Further, it has seen a decisive breakout of long downward sloping resistance trendline on the weekly charts and surpassed previous swing high of February 15, 2021.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
The stock's robust 8.5 percent surge last week signifies a decisive breakout from its "Falling Channel" formation at Rs 1,956 levels, affirming a resolute return of bullish momentum. The breakout is underscored by substantial trading volumes, signaling heightened market participation.
Furthermore, the stock's sustained position above the 50 percent Fibonacci retracement level, situated at Rs 1,740 and derived from the Rs 996-2,477 rally, establishes a solid medium-term support foundation.
The weekly strength indicator RSI (relative strength index) given a crossover above its reference line generated a buy signal.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,150-2,300, with downside support zone of Rs 1,900-1,825 levels.
Bharat Heavy Electricals (BHEL)
BHEL recorded a strong surge above the 'Rounded Bottom' pattern at Rs 148 on the weekly chart, signaling a sustained medium-term uptrend post a consolidation breakout. The formation of a Higher High-Low pattern and the stock's adherence to an upward-sloping medium term trendline underscore positive momentum.
Despite subdued volumes during the pattern, a breakout surge validates the optimistic bias, highlighting renewed market interest.
The weekly RSI signaled a buy as it crossed above its reference line, indicating a positive shift in strength and suggesting a potential bullish momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 178-186, with downside support zone of Rs 146-136 levels.
The stock exhibited a formidable 37.5 percent surge last week, marking a decisive breakout from its multi-month resistance level of June 2021 at Rs 180 levels. Bolstered by a strong bullish candle, this breakout signals a pronounced bullish momentum.
Noteworthy is the heightened volume activity during the breakout, indicating substantial market engagement. Additionally, the stock's resilience above crucial moving averages (20, 50, 100, and 200-day simple moving average) underscores a robust and sustained uptrend.
The daily & weekly strength indicator RSI is in a bullish mode and holding above its reference line indicating positive bias.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 250-270, with downside support zone of Rs 190-170 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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