Bulls seem to be holding strong control over Dalal Street as the Nifty 50 is likely to inch towards its record high of 22,127 soon, though intermittent consolidation can't be ruled out given the consistent uptrend in the last four days. Above 22,127, the index is likely to march towards 22,200-22,300 levels, while the 21,900 is expected to be immediate support, followed by 21,750, experts said.
On February 16, the BSE Sensex rallied 376 points to 72,427, while the Nifty 50 rose 130 points to 22,041 and formed a small bodied bullish candlestick pattern with upper and lower shadow, which resembles Spinning Top kind of pattern formation on the daily charts.
The broader markets also posted similar kind of gains last Friday, as the Nifty Midcap 100 and Smallcap 100 indices climbed six-tenth of a percent each.
Stocks that performed better than the broader markets on Friday included Mahindra & Mahindra, SBI Life Insurance, and Natco Pharma. Mahindra & Mahindra ended at record closing high of Rs 1,836, up 4 percent on the NSE, continuing uptrend with strong volumes for third consecutive session. The stock traded above all key moving averages, which is a positive sign.
SBI Life Insurance Company, too, ended at new closing high of Rs 1,508.5, up 3.8 percent and formed strong bullish candlestick pattern with healthy volumes on the daily timeframe, after a decisive breakout of horizontal resistance trendline. Further, the stock traded above all key moving averages.
Natco Pharma recorded nearly 16 percent rally to Rs 1,026.5 and formed robust bullish candlestick pattern with significantly higher volumes on the daily charts. The stock reached to the highest level since August 12, 2021 and traded above all key moving averages. The stock continued uptrend and made higher highs, higher lows formation for four days in a row.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
With last week's high (Rs 1,864), the stock has registered an all-time high representing bullish sentiments. It has also decisively broken out past couple of months "multiple resistance" zone of Rs 1,760 levels on a weekly basis indicating strong comeback of bulls. This breakout is accompanied with huge volumes which shows increased participation.
The stock is strongly supported with its 20, 50 and 100 day SMA (simple moving average) support which reconfirms bullish trend. The weekly "Bollinger band" buy signal suggests rising momentum. 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 2,020-2,170, with downside support zone of Rs 1,770-1,740 levels.
With Friday's strong gains, the stock has decisively broken out over the past couple of months consolidation range at Rs 1,500 levels along with huge volumes. The stock has recently recaptured its 100-day SMA and rebounded sharply.
The stock is in strong uptrend across all the time frames forming a series of higher tops and bottoms. 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 1,585-1,670 with downside support zone of Rs 1,450-1,420 levels.
In the weekly time frame, the stock has confirmed trend reversal at Rs 928 levels. It has also confirmed an "Inverse Head & Shoulder" trend reversal pattern with neckline value of Rs 940 levels. 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 etrm time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,300-1,410 with downside support zone of Rs 930-885 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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