Finally, the Nifty50 turned successful in its third attempt to move beyond 19,850-19,875 and tested the much-awaited 19,900 mark on November 28. If the index stays above this zone, then there will be a possibility of index moving towards 20,000-20,200 area, while 19,800-19,700 can act as an immediate support, followed by 19,600-19,500, the crucial support zone, experts said.
On November 28, the Nifty50 advanced 95 points to 19,890, and the BSE Sensex climbed more than 200 points to 66,174, while the Nifty Midcap 100 index gained half a percent and Smallcap 100 index rose third of a percent despite equal market breadth.
Stocks that saw healthy buying interest and performed much better than the broader markets included BSE, Radico Khaitan, and Tata Power Company. BSE has seen a positive opening and recorded 8 percent rally to close at Rs 2,349, continuing uptrend for three days in a row. The stock has formed long bullish candlestick pattern on the daily charts, with above average volumes. In the recent fall, the stock has taken a good support at 20-day EMA (exponential moving average) and remained above all key moving averages, which is a positive sign.
Radico Khaitan ended at record closing high of Rs 1,479.75 on the NSE, up 3.5 percent after breaking out horizontal resistance trendline, and formed bullish candlestick pattern with long upper shadow on the daily scale. The stock traded above all key moving averages, with above average volumes.
Tata Power Company has formed strong bullish candlestick pattern on the daily timeframe with healthy volumes, and rallied 5 percent to Rs 270.80, the highest closing level since April 13, 2022. The stock traded well above all key moving averages and is very close to its last swing high seen in September this year.
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
Prices are moving well within an upward sloping channel, as shown in the above chart. Prices have recently reversed from channel support. Prices are currently approaching the previous swing high, which is near Rs 276 levels. In addition, the Supertrend has continued to trade in the green, keeping the overall outlook positive.
In short, overall trend for Tata Power is positive. Use dips towards Rs 265 as an opportunity to ride the trend with target of Rs 280 as long as Rs 259 holds on the downside.
Radico Khaitan has steadily risen since past few weeks. The previous session's prices formed a large bullish candle on the daily chart. The price closed at Rs 1,478 levels, confirming the breakout of the rounding bottom pattern.
Overall momentum is increasing, as the ADX (average directional index) is at 41.86, indicating a trending market. In addition, prices recently closed above the previous swing high, which was near Rs 1,478 levels. Along with this, increase in Volumes acting as a double confirmation.
In short, trend for this stock is positive. Use dips towards Rs 1,450-1,465 as a buying opportunity for a move towards Rs 1,620-1,640 levels as long as Rs 1,400 holds on the downside.
Since April 2023, the BSE has continued to rise sharply. The entire rise that we are seeing is in the form of Primary Wave 3, which is considered to be the strongest.
The RSI remained in overbought territory. This implies that the possibility of a sudden reversal cannot be ruled out. One can use this as an opportunity to go long.
On the below chart, we can see that prices have been consistently closing above the upper bands since the beginning of wave 3, i.e. in May 2023, indicating the strength of the trend.
Also, stock is trading at the resistance of the channel so it is definitely a time to get cautious as chances of profit booking are higher.
So overall, trend for stock is positive. Use buy on dips method to ride the trend with the targets of Rs 2,470 or higher. While on the downside Rs 2,090 is the nearest support.
Follow Ashish Kyal on Twitter - @kyalashish
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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