Given the formation of a Doji candlestick pattern as well as a Tweezer Top candlestick pattern on the Nifty50 on November 7, the 19,400-19,450 level is expected to be crucial to watch out for. If the index breaks decisively either of the sides, then 19,500-19,600 can be reached on the higher end and 19,300 on the lower, experts said.
On November 7, the Nifty50 recouped losses from the day's low and finally ended just 5 points down at 19,407, while the BSE Sensex fell 16 points to 64,942. The broader markets maintained an upward journey for four days in a row, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.3 percent and 0.75 percent.
Stocks that were in action and fared better than the broader markets included Piramal Pharma, Varun Beverages, and Cochin Shipyard. Piramal Pharma shares rallied 4 percent to Rs 113 and formed bullish candlestick pattern with upper shadow on the daily charts, with strong volumes. The stock has seen a breakout of downward sloping resistance trendline and traded well above all key moving averages.
Varun Beverages ended at record closing high of Rs 991, up nearly 5 percent with robust volumes and formed healthy bullish candlestick pattern on the daily scale. The stock traded well above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average) and saw a breakout of falling resistance trendline adjoining highs of September 29, and November 6, which is a positive sign.
Cochin Shipyard shares, too traded well above all key moving averages and ended 3.8 percent higher at Rs 1,042 with above average volumes. The stock has seen a positive opening and formed bullish candlestick pattern with upper shadow on the daily timeframe, after breakout of downward sloping resistance trendline in previous session when it had formed long bullish candlestick pattern with above average volumes.
Here's what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
The stock is a part of the FMCG industry and has been experiencing a strong and sustained bull run. Except for minor corrections, the stock has been on a steady upward trajectory since 2021.
Currently, the stock is trading at its all-time high and is in uncharted territory. For investors, it's advisable to continue holding the stock while setting trailing stop-losses around Rs 920 levels to protect gains.
In the case of traders, the stock has recently experienced a fresh breakout with impressive trading volumes. As a result, the stock is expected to move towards Rs 1,080-1,100 zone in the near term.
The stock, listed as a demerged entity from Piramal Enterprises, has been entrenched in a pronounced downtrend since November 2022. However, there are now signs of a potential trend reversal.
The stock has formed a Cup & Handle formation, which is often an indication of accumulation. A confirmation came with a close above Rs 109, supported by substantial trading volumes, could signify the initiation of a fresh bullish upswing in the stock.
The stock was a relative underperformer since its listing, but its fortunes took a turn for the better after 2022. The stock initiated a strong upward move, breaking above Rs 685 mark, which was its previous high, and rallied significantly to reach Rs 1,250.
In recent weeks, the stock has experienced some time and price correction, but the overall structure indicates that these dips are potentially accumulation phases. As long as the stock maintains support around Rs 950 levels, it is expected to target Rs 1,250 in the coming weeks.
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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