The market failed to hold on to early gains and closed lower by more than third of a percent on June 19, but the Nifty50 managed to defend 18,700, which is expected act as an immediate support going ahead.
Weak global cues and selling pressure in banks, auto, FMCG and oil and gas stocks dented the market sentiment.
The BSE Sensex fell more than 200 points to 63,168, while the Nifty50 was down 70 points at 18,755 and formed a bearish candlestick pattern which resembles Dark Cloud Cover kind of formation on the daily scale.
The Bank Nifty also traded in line with the benchmarks, declining more than 300 points to 43,634 and formed a bearish candlestick pattern on the daily charts, while the broader markets continued to outperform, ending with moderate gains.
Stocks that performed better than the broader markets included Mahindra & Mahindra Financial Services, eClerx Services, and Dr Lal PathLabs. Mahindra & Mahindra Financial Services climbed 3.7 percent to Rs 316, the highest closing level since April 2018, and formed a bullish candlestick pattern on the daily charts with healthy volumes. Broadly, the stock has been in an uptrend since mid-March, barring intermittent correction and consolidation.
eClerx Services has defended 20-day EMA (exponential moving average) since May 17. On Monday, the stock jumped more than 7 percent to Rs 1,780, the highest closing level since January 2022 and formed robust bullish candlestick pattern on the daily scale with strong volumes. It has nicely given a breakout of long downsloping resistance trendline adjoining highs of January 13 and June 6 this year.
Dr Lal PathLabs has given a breakout of Mother candle of May 12 with bullish candlestick pattern formation and significantly higher volumes. The stock has touched 200-day EMA (Rs 2,140) intraday and finally settled at Rs 2,121, up 4.7 percent.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
The stock is currently trading at 52-week high which tells that the stock already is in strong momentum. Recently, the stock retested the Rectangle Pattern and experienced an upward bounce, with the breakout occurring in late May 2023.
Furthermore, both the weekly and daily timeframe's relative strength index (RSI) are showing a rising trend and have consistently remained above the 50 mark, indicating the presence of positive momentum.
We advise traders and investors to buy this stock for the target of Rs 1,950 where the stop-loss must be Rs 1,700 on the closing basis.
Dr Lal PathLabs' stock has demonstrated multiple instances of rebounding around the Rs 1,800 level since February 2020, making it a noteworthy and significant level of support.
Moreover, there has been a breakout of the Inverse Head & Shoulder pattern, which serves as a reliable pattern for the commencement of an upward trend.
Additionally, the prices are currently positioned above the 50-day exponential moving average (EMA), confirming the presence of an uptrend.
Furthermore, the relative strength index (RSI) has consistently remained above the 60 mark, indicating the sustained presence of positive momentum.
We advise traders and investors to buy this stock for the target of Rs 2,400 where the stop-loss must be Rs 2,020 on the closing basis.
Mahindra & Mahindra Financial Services
The stock is currently displaying a notable upward trend and is approaching its historical high, suggesting strong momentum. Furthermore, there is evidence of the stock breaking the rising channel, which suggests a continuation of the upward trend.
On the daily timeframe, the Bollinger bands have expanded, indicating heightened volatility typically associated with upward movements.
Additionally, the RSI on the daily timeframe has experienced a breakout, providing further confirmation of the presence of positive momentum.
We recommend traders and investors to buy this stock for the target of Rs 360 with a stop-loss of Rs 290.
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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