The market has seen some relief on March 29 after consolidation in previous few sessions and has broken the four-day lower top formation, but lost over 1 percent in the current month.
The BSE Sensex gained 346 points at 57,960, while the Nifty50 rose 129 points to 17,081 and formed a bullish candlestick pattern on the daily charts with higher top higher bottom formation on March 29.
However, on the monthly timeframe, it has seen the formation of a bearish candlestick pattern for the fourth consecutive month erasing its two months' gains (October-November 2022) in the following four months (December 2022 - March 2023).
In March, Anupam Rasayan India and Olectra Greentech were amongst the top 10 gainers, whereas Sobha was the second biggest loser.
Anupam Rasayan India shares rallied 29 percent during the month to Rs 833, the highest closing level since February 2022 and formed a robust bullish candle on the monthly scale with strong volumes, making higher top higher bottom formation. The stock continued uptrend for the second straight month.
Olectra Greentech jumped over 25 percent to Rs 625 (the highest closing level since July 2022), on top of over 5 percent gains in the previous month, forming a bullish candle on the monthly timeframe, with robust volumes for March as well as February. The stock has decisively broken its downward-sloping resistance trendline adjoining highs of December 2021, February 2022 and January 2023.
Sobha tanked nearly 27 percent, the biggest monthly loss since March 2020, to Rs 422, the lowest closing level since December 2020. The stock has formed long bearish candle on the monthly timeframe with high volumes, after breaking upward sloping support trendline adjoining lows of June and December 2022.
If we see their performance on March 29, Sobha was up 0.4 percent after falling sharply in the previous seven straight days, while Anupam Rasayan rose 0.2 percent and Olectra Greentech gained 1.3 percent.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Though Anupam Rasayan is looking lucrative at CMP, one needs to wait as of now because it is approaching its historical resistance levels of Rs 870 levels. In the previous trading session, it got rejected from mentioned Rs 870 levels which is a matter of concern in the coming few sessions.
On the indicator front, price action is far away from daily Alligator which is hinting towards some pullback in coming sessions. One can book profits in the range of Rs 840-850.
As of now wait and watch. Fresh longs are not advised at CMP.
Since the month the said counter has given a whopping 99 percent return. Moreover nearly Rs 750 levels (which is also its historical resistance) we have seen a Shooting Star-kind candlestick structure.
On the indicator front, the daily RSI (relative strength index) has made a negative hidden divergence (refer to the chart) which is hinting towards a pullback in coming sessions.
One can book profits near mentioned resistance levels. As of now wait and watch. Fresh longs are not advised at CMP.
On September 9, 2022, it made a top of Rs 751, since then it has been making the lower top and lower bottom structure which resulted in a massive 44 percent cut in price. At the current juncture, it has a bullish Butterfly pattern near Rs 400-410 levels which is looking lucrative.
On the daily scale, MACD (moving average convergence divergence) looks overstretched thus hinting towards a bounce back from a potential reversal zone of Rs 400-410.
Thus one can buy in small tranches in the range of Rs 415-425 and another around Rs 395-405 with an upside target of Rs 500 and a stop-loss of Rs 365 on a daily close basis.
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