Technically, the benchmark Nifty 50 is expected to be volatile in the coming days, especially after the correction in last couple of weeks. But, on the overall, the sentiments are still in favour of bears, given the formation of lower highs, lower lows on the weekly scale.
Hence, the immediate support is placed at 21,137, the low of last week, followed by 21,000, the crucial support zone, while the 21,500 is likely to act as a hurdle on the higher side in the near term, experts said.
On January 25, the expiry day for January futures and options contracts, the Nifty 50 was down 101 points to 21,353, and the BSE Sensex declined 360 points to 70,701, while the Nifty Midcap 100 index fell half a percent and Smallcap 100 index gained half a percent.
Stocks that outperformed the broader markets and were among the smart gainers in the Nifty 500 index included National Aluminium Company (Nalco), IFB Industries, and Rain Industries. Nalco climbed 4 percent to end at record closing high of Rs 141 and formed bullish candlestick pattern on the daily charts, with strong volumes. The stock traded well above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average), which is a positive sign.
IFB Industries extended uptrend for third straight session and recorded strong gains in the past couple of sessions, forming robust bullish candlestick pattern with significantly higher volumes on both days. Further, the stock jumped 10 percent to Rs 1,241, the highest closing level since November 26, 2021, and traded way above all key moving averages now.
Rain Industries gained solid strength after surpassing 200-day EMA decisively. On last Thursday, the stock rose 4 percent to Rs 175.6 and formed long bullish candlestick pattern on the daily timeframe, with healthy volumes. The stock has seen a breakout of downward sloping resistance trendline and traded above all key moving averages now.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
On the weekly chart, the stock has confirmed "rounding bottom" formation at Rs 135 levels on a closing basis. This breakout is accompanied with huge volumes indicating increased participation.
Recently the stock has recaptured 20-day SMA (simple moving average) and rebounded sharply. The daily "Bollinger band" buy signal indicates increased momentum. The stock is in strong uptrend across all the time frames forming a series of higher tops and bottoms formation.
The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish sentiments. The daily, weekly and monthly strength indicator RSI (relative strength index) is in bullish terrain which supports sustained strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 160-175, with downside support zone of Rs 134-122 levels.
With last week's strong gain of 24 percent, the stock has witnessed bullish trend reversal on the weekly time frame. In addition, the stock has also confirmed "rounding bottom / multiple resistance" formation breakout at Rs 1,106 on a closing basis. This breakout is accompanied with huge volumes which signals increased participation.
The daily weekly and monthly "Bollinger band" buy signal confirms increased momentum. The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms bullish sentiments.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1440-1620, with downside support zone of Rs 1120-1050 levels.
On the weekly chart, the stock has confirmed a "triangular" breakout at 171 levels on a closing basis indicating trend reversal. Huge volumes on this breakout signifies increased participation.
The stock is well placed above its short and medium term averages i.e. 20, 50, 100 and 200 day SMA which reconfirms bullish trend. The daily "Bollinger band" signal supports rising momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 190-200, with downside support zone of Rs 160-155 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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