After getting above the downward sloping resistance trendline in the middle of last week, the Nifty50 has consistently held above 19,550-19,600 amid consolidation. Hence, as long as the index holds the said support, another attempt towards 19,000 can't be ruled out in the coming days, experts said.
On November 20, the benchmark indices closed lower after a rangebound trade. The Nifty50 fell 38 points to 19,694 and formed a small bearish candlestick pattern with minor upper and lower shadow on the daily charts. The BSE Sensex was down 140 points at 65,655, while the broader markets ended flat.
Stocks that were on the buyers' radar in the consolidative market included Jindal Stainless, PB Fintech, and KEI Industries. Jindal Stainless has seen a decisive breakout of horizontal resistance trendline adjoining highs of October 3 and 4, and of November 17, and rallied 4.5 percent to end at record closing high of Rs 529.6. The stock has formed bullish candlestick pattern with upper shadow on the daily scale, with strong volumes, and traded above all key moving averages (20, 50, 100 and 200-day exponential moving average), which is a positive sign.
PB Fintech saw a strong breakout of long downward sloping resistance trendline on November 15 and maintained upward journey for fourth consecutive session. The stock climbed over 3 percent with above average volumes and traded above all key moving averages, forming bullish candlestick pattern on the daily scale.
KEI Industries has successfully seen a breakout of falling resistance trendline on Monday and formed bullish candlestick pattern with upper and lower shadows on the daily charts, with above average volumes. The stock gained 1.9 percent at Rs 2,775 and traded above all key moving averages.
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
KEI Industries attempted to reach a new record high in the previous session, but were unable to do so. It is evident from the below chart that the stock has been consolidating since July 2023 within a wider range.
Currently prices are trading near the resistance which is near Rs 2,800 levels. Therefore, a close above Rs 2,800 can lead to a breakout of the consolidation and then we expect good rise in this stock.
Along with that, Supertrend has just turned green. Overall momentum is picking up. All indications pointing to a potential breakthrough in KEI Industries.
So, any close above Rs 2,800 is must for fresh buying to emerge with the target of Rs 2,950. On the other hand, support comes near Rs 2,650 levels.
Prices which were trading in between the downward sloping channel has given a breakout of it and also sustained above it which is a positive sign. On the above chart, JSL is following 36 Days Time cycle very well and we can clearly see that prices are forming low every time it approaches near to this cycle.
Cycles are essentially used to capture lows. In the below chart as well, we can see most of the lows are formed on our cycle and after almost every 36 period, JSL has shown a positive reversal. Recently after a dip, the stock gave a break above previous swing high which was near Rs 510 levels cycle turned on to positive side. Since then a good rise was seen.
In short, the outlook for JSL looks positive. Any break above Rs 540 can lift the price higher towards Rs 572 as long as Rs 508 holds on the downside.
PB Fintech has been moving higher recently and intact in strong uptrend. On the daily chart, in the previous session prices formed a bullish candle. Price has closed Rs 815 levels which confirms breakout of the rounding bottom pattern.
Price is trading above the Ichimoku Cloud which is bullish sign. If we look closely, we can see that since November 1 not a single candle has given a close below previous day’s low which suggest strength in the trend. Since the RSI (relative strength index) is in overbought territory, it is best to follow the trend by buying on dips rather than catching tops.
In short, trend for PB Fintech stock is positive. Use dips towards Rs 810-820 as a buying opportunity for a move towards Rs 910-920 levels as long as Rs 785 holds on the downside.
Follow Ashish Kyal on Twitter - @kyalashish
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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