Though the market wiped out all its gains in the last hour of trade and ended moderately lower on April 30 due to caution ahead of Fed meet outcome, overall, the trend remains in favour of bulls as it maintained above all key moving averages as well as continued with higher highs, higher lows formation. Hence, 22,783, the record high levels seen in previous session, is expected to remain as a key hurdle on the higher for the Nifty 50, with immediate support at 22,500 in coming sessions, experts said. The US Federal Reserve on May 1 retained interest rates unchanged at 5.25-5.5 percent.
On April 30, the Nifty 50 fell 39 points to 22,605, and formed bearish candlestick pattern on the daily charts, while the BSE Sensex was down 189 points to 74,483. The Nifty Midcap 100 and Smallcap 100 indices ended flat.
Stocks that outperformed broader markets and were among the gainers in the Nifty 500 index included HDFC AMC, M&M, Power Grid, PFC, Bank of Baroda, and PNB.
HDFC AMC recorded more than 3 percent gains to Rs 3,894.65, which is near the record closing high of Rs 3,903.85 of February 27 this year. The stock has formed bullish candlestick pattern on the daily charts with significantly higher volumes.
Mahindra and Mahindra has seen a nice consolidation breakout and rallied 4.6 percent to end at new closing high of Rs 2,156. The stock has seen formation of long bullish candlestick pattern on the daily timeframe with above average volumes.
Power Grid Corporation also recorded new closing high of Rs 301.85 on the NSE, rising 2.77 percent with healthy volumes, and formed long bullish candlestick pattern on the daily charts, while PFC has traded above all key moving averages with consistent uptrend and climbed 6.3 percent to Rs 441.55, forming bullish candlestick pattern on the daily charts with strong volumes.
Bank of Baroda continued its upward journey for yet another session with healthy volumes, and rose 3.3 percent to Rs 281.50, forming long green candle on the daily timeframe, while Punjab National Bank (PNB) traded above all key moving averages with above average volumes, and advanced by 2.8 percent to Rs 141, the highest closing level February 14, 2018.
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:
Over the past 28 trading sessions, HDFC AMC has maintained a range between approximately Rs 3,600 and Rs 3,800. Recently, it broke out convincingly from this range, presenting an attractive opportunity. Additionally, it breached the Bear trendline and closed above the upper Bollinger band, reinforcing the bullish sentiment.
Notably, the Daily Stochastics indicator consistently avoided entering the oversold zone prior to the breakout, indicating sustained buying interest within the lower levels of the consolidation range. Consequently, we advise initiating long positions on HDFC AMC within the range of Rs 3,850-3,900, targeting an upside of Rs 4,275, with a stop-loss set around Rs 3,675 based on daily closing prices.
In the last 14 trading sessions, M&M has traded within the range of roughly Rs 2,010 to Rs 2,135. Recently, it convincingly broke out from this range, offering an appealing opportunity. Furthermore, it surpassed the upper Bollinger Band, coinciding with the consolidation above the middle Bollinger Band, reinforcing the bullish outlook.
Notably, the Daily Stochastics indicator remained clear of the oversold zone before the breakout, indicating ongoing buying interest at the lower levels of the consolidation range. Consequently, we recommend initiating long positions on M&M within the range of Rs 2,120-2,160, targeting an upside of Rs 2,385, with a stop-loss set around Rs 2,015 based on daily closing prices.
Power Grid Corporation of India
During the recent trading session, Power Grid experienced a notable breakout above the R4 camarilla pivot at Rs 299.60 levels, maintaining its position above this threshold. Moreover, the daily RSI (relative strength index) has entered into overbought territory, indicating an expected bullish momentum in the days ahead.
The combination of price action persisting above the R4 camarilla pivot and the RSI reaching overbought levels forms a strong technical confluence, bolstering the bullish sentiment surrounding Power Grid.
Additionally, it surpassed its previous all-time high at Rs 298.90 levels. Consequently, investors may consider initiating long positions within the range of Rs 299-302, targeting an upside potential of Rs 321, with a prudent stop-loss placed near Rs 290 based on daily closing prices.
Note: Camarilla Pivot levels are shown in the chart for reference.
Here's what Riyank Arora of Mehta Equities recommends investors should do with these stocks when the market resumes trading today:
PFC (Power Finance Corporation)
The stock has given a good breakout from its Inverted Head & Shoulder formation. With the stock giving a strong closing above its major resistance mark of Rs 435 and volume witnessing a strong pick-up, surging to almost 4 times its average (30) days traded volumes.
With the RSI (relative strength index 14) being around 68 on its daily charts, the momentum looks strong. The stock should likely head towards Rs 475 and Rs 480. We advise investors to hold on to their positions with a stop-loss of Rs 425.
The stock has touched its immediate resistance zone of Rs 283-285 on its daily time frame charts, forming a 'potential' Double Top. As per the technical structure, the stock has also touched its upper end of the parallel channel formation.
With the stock moving well above its moving averages, and the initial base trend being positive, any breakout above Rs 290 should push the rally further in the stock. However, as long as this resistance is not taken out, we might see the stock witnessing a minor dip towards Rs 270-275.
We advise investors to follow a wait-and-watch approach on Bank of Baroda until there is a breakout above Rs 290 for buying.
The stock seems to be moving in a rising wedge formation on its daily time frame charts and has touched its upper end of the wedge formation. With RSI (14) being around 68, the momentum continues to look strong.
Any breakout above Rs 144 should push the rally further and lead to a breakout on the same. We advise investors to hold their existing long positions and wait for a breakout above Rs 144 - which should push the rally further towards Rs 155 and Rs 160. A trailing stop-loss can be kept at Rs 135 for all existing long positions on the stock.
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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