Given the continuation of higher-high-higher-low pattern for the second straight week, and positive momentum indicators on all the major time frames, the Nifty is likely to try to surpass 22,600 in the coming session and if it manages to hold above this level in the coming sessions, then 22,800 is the next level to watch out for on the higher side, with support at 22,400-22,300 levels, experts said.
On April 5, the benchmark indices closed flat with the Nifty 50 declining 1 point to 22,514, and the BSE Sensex, rising 21 points to 74,248 after the Monetary Policy Committee retained the repo rate at 6.5 percent for the seventh consecutive bi-monthly policy review. For the week, the Nifty 50 gained 0.8 percent.
The broader markets performed better than the frontline indices, as the Nifty Midcap 100 and Smallcap 100 indices gained 0.6 percent and 0.8 percent, respectively.
Stocks that recorded strong performance compared to benchmarks in the last trading session included Indraprastha Gas, Hindustan Copper, and Godrej Properties. Indraprastha Gas has seen a breakout of downward sloping resistance trendline adjoining highs of October 17 last year and March 5 this year, and jumped 5.3 percent to Rs 460 on the NSE. The stock has formed a robust, bullish candlestick pattern on the daily charts with significantly higher volumes.
Hindustan Copper rallied 2.7 percent to Rs 322.40, the highest closing level since February 22, 2011, and formed long bullish candlestick pattern on the daily timeframe, with above average volumes. The stock traded above all key moving averages and broadly continued higher highs, higher lows formation on the daily scale since mid March.
Godrej Properties closed near its record high of October 2021, rising 3.8 percent last Friday to Rs 2,500.35 on the NSE. The stock has formed a long bullish candlestick pattern on the daily charts with healthy volumes, while the stock traded 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:
On the daily and weekly time frame the stock has experienced the trend reversal by forming a series of higher tops and bottoms indicating positive bias. With last week's strong up-move of 7 percent, the stock has decisively broken out past one year "down-sloping" trendline at Rs 452 on a closing basis indicating strong come back of bulls. This breakout is accompanied with huge volumes indicating increased participation on rally.
The daily, weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which shows sustained strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 500-520, with downside support zone of Rs 435-428 levels.
With strong upmove of 16 percent during the last week, the stock has decisively broken out past 3-4 months consolidation range (Rs 310-240) on a closing basis indicating positive bias.
It has also confirmed a 'flag' formation - continuation pattern breakout at Rs 307 indicating continuation of prior uptrend. The stock is well placed above its 20, 50, 100 and 200-day SMA (simple moving average) which reconfirms bullish trend. The daily, weekly and monthly strength indicator RSI is in positive terrain which shows sustained strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 355-385, with downside support zone of Rs 307-300 levels.
The stock is in strong uptrend across all the time frames forming a series of higher tops and bottoms. With current daily close, the stock has marginally closed above its 'inverse head-and-houlder' neckline value of Rs 2,508 levels.
Huge rising volumes near this breakout zone signifies increased participation. The daily Bollinger band 'buy' signal indicates increased momentum. The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish trend.
The daily, weekly and monthly strength indicator RSI is in positive terrain which shows sustained strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,600-2,830, with downside support zone of Rs 2,390-2,300 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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