The market managed to extend its upward journey with moderate gains due to a rebound in late trade on February 16. After a strong rally in initial parts of the day, the benchmark indices, as the day progressed, gradually wiped out gains and turned lower, but rebounded immediately.
The BSE Sensex climbed more than 40 points to close tad above 61,300, while the Nifty50 rose 20 points to 18,036 and formed bearish candlestick pattern on the daily charts as the closing was lower than opening levels, but there was continuity in higher high higher low formation for third consecutive day.
The broader markets continued uptrend for yet another session, outperforming frontline indices on positive breadth. The Nifty Midcap 100 and Smallcap 100 indices gained seven-tenth of a percent and 1 percent respectively.
Stocks that performed much better than broader markets included Navin Fluorine International, which rose more than 5 percent to Rs 4,301.5 on the NSE and formed large bullish candle on the daily charts with above average volumes. Also there was a Morning Star kind of pattern on the daily charts if we look at last three candles, after downtrend, which is a bullish reversal pattern. The stock traded above all key moving averages.
Oil India shares rallied 5 percent to Rs 260.40, the highest closing level since June 29, 2022, and formed long bullish candle on the daily charts, with above average volumes. The stock traded above all short term as well as long term moving averages.
Mphasis, like other technology stocks, traded quite strong, rising nearly 5 percent to Rs 2,263, the highest closing level since August 23, 2022 and formed robust bullish candle on the daily charts with strong volumes. Also with Thursday's rally, the stock now traded above all key moving averages, indicating positive sign.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
The stock was into a sloping channel from the past few weeks. Eventually, its downward move stopped near the important demand zone. Moreover, the strong rebound in the counter from its short term moving averages on daily scale suggests that the bullish momentum to remain in the near future.
Unless it is trading below Rs 4,150, positional traders can retain an optimistic stance and look for a target of Rs 4,600.
The stock is trading into a rising channel chart formation making the higher top and higher bottom constantly. As a result, all major technical trend indicators such as MACD (moving average convergence and divergence) and ADX (average directional index) are strong and steady.
Therefore, upward movement from the current level is very likely to continue in the coming horizon.
For the traders, Rs 250 would be the key support level to watch out. Above which the uptrend structure will continue until Rs 280.
The stock has given a breakout of its Ascending Triangle chart pattern with a strong bullish candlestick. Additionally, on the daily charts, it has formed a higher bottom formation, hence the structure of the counter indicates the beginning of a new up move from the current levels.
For positional traders, Rs 2,180 would be the trend decider level. If it trades above the same, uptrend formation will continue till Rs 2,440. However, if it closes below Rs 2,180 traders may prefer to exit from trading long positions.
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