Market experts expect the Nifty 50 to remain in the 21,500-21,850 zone in the coming days. Breaking the range on either side may give a firm direction as if the index decisively breaks 21,850 on the higher side, psychological 22,000 mark is the key to watch, but the falling below 21,500 can bring correction up to 21,300 levels, experts said.
On January 5, the Nifty 50 climbed 52 points to 21,711 amid volatility and formed a Doji candlestick pattern on the daily timeframe, indicating indecisiveness among bulls and bears about future market trend. The BSE Sensex jumped 179 points to 72,026.
Stocks that performed better than broader markets last Friday included CreditAccess Grameen, Trident, and BEML. CreditAccess Grameen has formed bottom at Rs 1,560 after correction in the recent past and recorded an 8.4 percent rally at Rs 1,729 on the NSE. The stock has formed a robust bullish candlestick pattern on the daily charts with above-average volumes.
Trident extended its northward journey for sixth consecutive session and surged 7 percent to Rs 40.90, the highest closing level since September 7 last year. The stock has formed strong bullish candlestick pattern on the daily scale with robust volumes. In fact, the volumes remained healthy in the past four sessions.
BEML jumped over 7 percent to end at record closing high of Rs 3,096 and formed long bullish candlestick pattern on the daily timeframe with strong volumes. The stock after recent consolidation started trading above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average), which is a positive sign.
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 frame forming a series of higher tops and bottoms indicating bullish sentiments. On the weekly chart, the stock is trending up in Up-sloping Channel indicating positive bias.
Rising volumes on this rally signifies increased participation. The daily and weekly strength indicator RSI (relative strength index) is in positive terrain which shows rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,860-1,970, with downside support zone of Rs 1,560-1,530 levels.
Since June 2022, the stock is consolidating within Rs 42-26 levels along with huge volumes indicating increased participation near the support zone. With last week's 14 percent gains, the stock has marginally broken out an Inverse Head & Shoulder pattern indicating strong trend reversal. This strong buying momentum was observed from the 20, 50, 100 day SMA support zone which is placed around 36 levels.
The daily Bollinger band buy signal suggests increased momentum. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows sustained strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 48-55, with downside support zone of Rs 37-35 levels.
On the daily chart, the stock has confirmed "V" formation indicating sharp rally. Recently the stock has recaptured 20-day SMA (simple moving average Rs 2,500) and renounced sharply indicating strong comeback of bulls.
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 weekly Bollinger band buy signals indicating rising momentum. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows sustained strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 3,250-3,420, with downside support zone of Rs 2,920-2,700 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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