The recovery started off last Friday is expected to continue in the coming sessions. The Nifty 50 may find hurdle at 22,300 in the monthly F&O expiry week and if this level gets taken out, then 22,500 is the key level to watch out for, while on other side, 22,000 is likely to act as an immediate support as breaking of this can drag the index towards 21,800-21,700 levels, experts said.
On April 19, the Nifty 50 rallied 151 points to 22,147 and formed a Bullish Piercing Line pattern, the bullish reversal pattern, while the BSE Sensex jumped 599 points to 73,088.
However, the broader markets were moderately under pressure with the Nifty Midcap 100 and Smallcap 100 indices declining 0.6 percent and 0.1 percent.
Stocks that smartly outperformed the broader markets last Friday included Elecon Engineering, Just Dial, and Godawari Power. Elecon Engineering decisively surpassed its previous swing high of January 30 and hit a new high on April 19. The stock rose 10 percent to end at a new closing high of Rs 1,166 and formed robust bullish candlestick pattern on the daily charts with significantly higher volumes, while the stock traded above all key moving averages.
Godawari Power also hit a new high and traded above all key moving averages. The stock climbed 3.2 percent to end at new closing high of Rs 870, and formed long bullish candlestick pattern on the daily charts with above average volumes.
Just Dial recorded healthy rally with robust volumes for yet another session, rising 5.6 percent to Rs 1,065.9 and forming strong bullish candlestick pattern on the daily timeframe. The stock traded above all key moving averages, 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 has registered an all-time high at Rs 1,198 level, indicating bullish sentiments. It has also confirmed "V" shape breakout at Rs 1,125 level on a closing basis indicating continuation of prior upmove. This breakout is accompanied with huge volumes which signals increased participation.
Currently the stock is well placed above its 20, 50, 100 and 200-day SMA (simple moving average) which justify the uptrend across all the time frames. The daily and weekly strength indicator RSI (relative strength index) is in positive terrain which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,345-1,485 with downside support zone of Rs 1,120-1,070 levels.
The stock has witnessed approximately two years "multiple resistance" zone breakout at Rs 960 level on a weekly closing basis. It has also confirmed higher tops and bottoms formation on the weekly chart indicating bullish sentiments. Huge volumes on this breakout signifies a strong comeback of bulls. On the daily time frame, the bullish gap formed on April 18 (Rs 940-915) indicates buying force.
The daily and weekly " Band Bollinger" buy signal denotes the increased momentum. The daily ,weekly and monthly strength indicator RSI is in positive terrain which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,220-1,385, with downside support zone of Rs 985-940 levels.
The stock is in strong uptrend forming a series of higher tops and bottoms indicating bullish sentiments. It has also registered a new high at Rs 880 level which signals positive bias.
With current week's close, the stock has decisively broken out its past four months "multiple resistance zone" at Rs 825 levels indicating positive bias. Currently the stock is well placed above its 20, 50, 100 and 200-day SMA which justify the uptrend across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 940-1,005, with downside support zone of Rs 815-780 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
