The Nifty 50, as was anticipated, surpassed the 22,500 mark last week, which is expected to be a crucial level for the direction on either side going ahead. As long as the index forms higher highs, higher lows, it is likely to face the hurdle at 22,600-22,800 levels on the higher side, with support at 22,400 and then at 22,200, experts said.
On March 7, the benchmark indices were volatile but managed to end at a new closing high. The Nifty 50 rose 20 points to 22,494, and the BSE Sensex gained 33 points to 74,119, while the broader markets fared a bit better than the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.22 percent and 0.85 percent.
Stocks that performed much better than the broader markets on last Thursday included Bajaj Auto, Rallis India, and Zensar Technologies. Bajaj Auto recorded healthy performance on all days in the past week, rising 3.2 percent to end at new closing high of Rs 8,879, and formed bullish candlestick pattern on the daily charts with healthy volumes.
Rallis India has seen a decisive breakout of downward sloping resistance trendline and clocked 13 percent gains at Rs 287.8, forming robust bullish candlestick pattern on the daily timeframe with significantly higher volumes. In fact, the stock traded above all key moving averages, which is a positive sign.
Zensar Technologies, too, has seen a breakout of falling resistance trendline and reporting nearly 5 percent rally to Rs 591. The stock has formed long bullish candlestick pattern on the daily charts with above average volumes for yet another session, while trading above all key moving averages.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
The stock is in strong uptrend across all the time frames forming a series of higher tops and bottoms. Recently the stock has recaptured its 20-day SMA (simple moving average - Rs 8,082) and rebounded sharply which shows strength on the short term horizon.
The stock is well placed above its 20, 50, 100 and 200-day SMA (simple moving average) and these averages are inching up along with rising prices which reconfirms bullish trend.
The daily, weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which shows sustained strength. Huge volumes on this rally signifies sustained participation.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 9,220-9,550 with downside support zone of Rs 8,500-8,270 levels.
On the daily chart, the stock has confirmed a "triangular" breakout at Rs 577 levels on a closing basis along with huge volumes. The stock has recaptured its 20, 50, 100-day SMA and rebounded sharply.
The daily , weekly and monthly strength indicator RSI is in positive terrain which shows sustained strength. The daily "Bollinger band" buy signal shows increased momentum on short to medium term time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 640-655, with downside support zone of Rs 555-530 levels.
In the weekly time frame, the stock has confirmed "Cup & handle" formation breakout at Rs 272 levels on a weekly closing basis. This breakout is accompanied with huge volumes indicating increased participation.
The stock is well placed above its 20, 50, 100 and 200-day SMA and these averages are inching up along with rising prices which reconfirms bullish trend.
The daily, weekly and monthly strength indicator RSI is in positive terrain which shows sustained strength. The daily and weekly "Bollinger band" buy signal shows increased momentum on short to medium term time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 318-340, with downside support zone of Rs 270-253 levels.
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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