The market closed a rangebound session with moderate gains and maintained its previous day's closing levels on July 10. The benchmark indices traded within previous day's range and formed an inside bar kind of pattern on the daily charts.
The BSE Sensex gained 64 points to 65,344, and the Nifty50 was up 24 points at 19,356, but the broader markets remained under pressure for yet another session, with the Nifty Midcap 100 and Smallcap 100 indices falling 0.4 percent and 0.6 percent.
The Bank Nifty also slipped into the red and closed down 64 points at 44,861, while the Nifty IT lost 366 points or 1.24 percent to 29,195, and formed a bearish belt hold pattern on the daily charts, but it took support at 200-day EMA (exponential moving average - 29,114).
Stocks that were in action and performed better than benchmarks and broader markets included Reliance Industries, Mazagon Dock Shipbuilders, and Ceat. Reliance Industries rallied 3.85 percent to Rs 2,735.05, the highest closing level since June 9 last year and formed long bullish candlestick pattern on the daily charts with significantly higher volumes. The stock closed well above the breakout of downward sloping resistance trendline adjoining highs of April 2022 and November 2022.
Mazagon Dock Shipbuilders has given a healthy breakout of consolidation and rallied 9.4 percent to end at record closing high of Rs 1,447. The stock has formed long bullish candlestick pattern on the daily scale with above average volumes and has seen a breakout of upward sloping resistance trendline adjoining highs of December 5 last year, and June 21, 2023.
Ceat shares rebounded smartly after a day of correction, and climbed over 4 percent to end at all-time closing high of Rs 2,516. The stock has formed bullish candlestick pattern with long upper shadow & small lower shadow on the daily charts, with strong volume.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
The stock has started to get into the formation of higher highs and higher lows which shows the establishment of uptrend. Moreover, there has been a recent breakout of the Rounding bottom pattern, which signifies the start of an upward trend. This breakout further supports the view that the stock is likely to move higher.
Additionally, the stock prices are currently trading above the 12 & 26-day exponential moving average (EMA), which acts as a dynamic support level. This reinforces the bullish sentiment and provides further confirmation of the ongoing uptrend.
Furthermore, on the daily timeframe, the relative strength index (RSI) has experienced a breakout, providing additional confirmation of the positive momentum in the stock.
We advise traders and investors to buy this stock for a target of Rs 3,000, where the stop-loss must be Rs 2,650 on the closing basis.
The stock currently nears its all-time high, indicating a significant and robust momentum in the price movement. This suggests that the upward trend is strong and likely to continue.
Moreover, there has been a breakout of the Ascending Triangle pattern, which is a reliable technical pattern that often signifies the continuation of an upward trend. This breakout further supports the notion that the stock's prices are poised for continued up move.
Additionally, the stock is currently trading above the 12-day EMA, which acts as a dynamic support level. This reinforces the bullish sentiment and provides further confirmation of the ongoing uptrend.
Furthermore, the RSI has consistently stayed above the 60 mark. This indicates the presence of positive momentum in the stock's price movement.
We advise traders and investors to buy this stock for a target of Rs 1,700, where the stop-loss must be Rs 1,330 on the closing basis.
The stock is currently exhibiting a robust and persistent upward trend, reaching its historical high. This indicates a strong momentum in the ongoing trend.
Furthermore, there are compelling signs of the stock breaking out of a Cup & Handle pattern, which suggests that the upward movement is likely to continue.
Additionally, when observing the daily timeframe, we can see that the stock has consistently rebounded from the 12-day EMA, acting as a dynamic support level. This further reinforces the positive outlook for the stock and strengthens the belief in its upward trajectory.
Moreover, the RSI has consistently remained above the 60 mark, indicating the continual presence of positive momentum in the stock's price action.
We recommend traders and investors to buy this stock for a target of Rs 2,920 with a stop-loss of Rs 2,370.
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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