Considering a sharp fall in the previous session, the market is likely to see some consolidation and may try to take a support at the August low of 19,224, but the breaking of this support can drag it towards the psychological 19,000 mark in the near term, while any bounce-back may be seen towards 19,500-19,600 which may initially be short-lived, experts said.
On October 23, the Nifty50 dropped 261 points or 1.3 percent to 19,282, and formed a long, bearish, candlestick pattern on the daily charts after breaking not only 19,480 but also the 19,300 levels in a single session.
The BSE Sensex was down 826 points or 1.3 percent to 64,572, while the Nifty Midcap 100 and Smallcap 100 indices corrected more than the benchmarks, falling 2.7 percent and 3.6 percent on disappointing breadth.
Stocks that showed good performance and stayed with bulls in the falling market included Mahindra & Mahindra, CreditAccess Grameen, and BSE. Mahindra & Mahindra gained 0.4 percent at Rs 1,565 on the NSE and formed a bullish candlestick pattern with upper shadow on the daily charts, with above average volumes. The stock held above the 50-day EMA (exponential moving average) and has been consolidating around the same for last few sessions, while it continued to trade above the long upward sloping support trendline.
CreditAccess Grameen has formed long bullish candlestick pattern with long upper shadow on the daily scale, with strong volumes, indicating positive trend in the counter after consolidation for last several sessions. The stock has seen gap up opening and jumped 8.5 percent to end at record closing high of Rs 1,507 after breaking out downward sloping resistance trendline.
BSE also saw record closing high of Rs 1,707, up 7.5 percent after gap up opening, and formed bullish candlestick pattern with long upper shadow on the daily timeframe & robust volumes, which is a positive sign. The stock continued uptrend for fourth consecutive session and traded well above all key moving averages (20, 50, 100 and 200-day EMA).
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
In the previous session Mahindra and Mahindra showed resilience in the market and closed higher inspite of benchmark going down by 1.40 percent. On the below chart, we can see the stock is in consolidation phase from July 2023. Prices have closed just above the mid band of Bollinger band.
KST (Know Sure Thing) which is a momentum indicator is just near 0 line indicating no momentum yet. The stock is having good support at Rs 1,515 levels. Overall, auto stocks are on an uptrend and is likely to have limited downside.
In short, Mahindra and Mahindra looks sideways for short term perspective and break above Rs 1,590 will open targets for Rs 1,650 with Rs 1,515 as important support.
CreditAccess Grameen is trading near all-time high after healthy quarterly results. Currently, the stock is moving up in an upward sloping channel. Also, after turning above signal line, KST indicator is now moving higher suggesting that a momentum on the stock is good and is picking up.
Previously prices bounced from the channel support. One should be using dips to ride the trend for a move to Rs 1,585 levels. Prices are trading above the cloud and as long as price holds on the downside, the trend is likely to remain positive.
In short, we can expect bullish momentum to continue in this stock as long as support at Rs 1,450 is intact for a move to Rs 1,585 or higher levels.
BSE is in an uptrend and has defied the broader correction in the indices. The stock is moving in the upward moving channel and is currently in the wave 3 of an impulse pattern. We can see the stock is above the Ichimoku Cloud and has shown retest of the base line before resuming its upward journey.
KST is confirming the momentum in the counter and the stock in inching toward new highs. The positive trend is likely to continue in the stock and any dip should be used to accumulate the stock.
BSE trend is positive for a move to Rs 1,850 and if the channel resistance is broken we can expect move to Rs 2,000 levels while on the downside Rs 1,590 can act as a near term support.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
