The market closed lower on March 15, but managed to sustain the 21,900 level for the third straight session. Unless the Nifty 50 index decisively breaks down below this level, rangebound trade is likely to continue in the market with resistance on the higher side at 22,200-22,300, experts said, adding that if the index decisively breaks the support of 21,900 on the closing basis, the selling pressure may get extended up to 21,500 mark.
On March 15, the Nifty 50 settled at 22,023, down 123 points and formed small-bodied bearish candlestick pattern with upper and lower shadows on the daily charts, indicating volatility in the index, while the BSE Sensex was down 454 points at 72,643.
The broader markets ended mixed last Friday, as the Nifty Midcap 100 index fell half a percent and Smallcap 100 index gained 0.4 percent.
Moneycontrol selected three stocks that outperformed the broader markets - L&T Technology Services, UPL, and Solar Industries. L&T Technology Services ended rally for yet another session, rising 3 percent to Rs 5,419 and formed a long bullish candlestick pattern on the daily charts despite market volatility, with healthy volumes. The stock traded well above all key moving averages after recent run up.
UPL also rallied for second consecutive session, climbing nearly 3 percent to Rs 475 and formed a bullish candlestick pattern on the daily scale with above average volumes. The stock jumped above 10-day EMA (exponential moving average) with current rally and moved closer to 21-day EMA.
Solar Industries, too, behaved in a similar fashion, rallying for yet another day with strong volumes. The stock jumped 8.7 percent to end at record closing high of Rs 8,855 and formed long bullish candlestick pattern on the daily timeframe, while 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:
On the weekly chart, the stock is in strong uptrend forming a series of higher tops and bottoms indicating sustained uptrend. With the past five-week's price correction, the stock has retracted its prior uptrend by 38.2 percent Fibonacci level (Rs 5,079) and rebounded sharply.
The weekly price action has formed a "bullish candle" carrying a long lower shadow indicating buying support at lower levels. Rising volumes on this rally signifies increased participation.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 5,650-5,880, with downside support zone of Rs 5,240-5,100 levels.
The stock is in a strong downtrend forming a series of lower tops and bottoms. The stock is also sustaining below its 20, 50, 100 and 200-day SMA's (simple moving average) which suggests bearish sentiments.
However, in the past couple of sessions, the stock has witnessed strong bounceback from lower levels along with huge volumes indicating short covering at lower levels.
The daily strength indicator RSI (relative strength index) is placed along with positive divergence indicating rising strength at lower levels. The weekly price action has formed a "Hammer" candlestick pattern however any follow up weekly close above Rs 488 levels will confirm the above-mentioned trend reversal pattern.
Investors are advised to utilise any small relief rallies towards Rs 525-550 levels as exit opportunities. The downside support zone is Rs 460-425 levels.
The stock is in strong uptrend across all the time frames forming a series of higher tops and bottoms. The stock has also registered an all-time high at Rs 8,989 levels indicating bullish sentiments. On the weekly chart, the stock has witnessed "multiple resistance" breakout at Rs 7,600 levels along with huge volumes indicating increased participation in the rally.
The daily, weekly and monthly strength indicator RSI is in positive terrain which shows sustained strength. The stock is well placed above its 20, 50, 100 and 200-day SMA's and these averages are also inching up along with rising prices which reconfirms bullish trend.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 9,513-10,120 with downside support zone of Rs 8,100-7,900 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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