Bears are expected to gain control over Dalal Street in the near term as the Nifty 50 forms a bearish reversal pattern on the weekly charts and a long red candle on the daily timeframe. Hence, if the Nifty 50 fails to hold the support of 22,300-22,200 levels in the coming sessions, then the psychological 22,000 mark can't be ruled out, whereas on the higher side, 22,700-22,800 can act as a key hurdle, experts said.
On April 12, the benchmark indices corrected 1 percent on rising geopolitical tensions in the Middle East amid simmering conflict between Iran and Israel which, experts feel, may dampen the market sentiment further. The BSE Sensex was down 793 points to 74,245, and the Nifty 50 dropped 234 points to 22,519, while the Nifty Midcap 100 and Smallcap 100 indices declined 0.6 percent and 0.5 percent.
Stocks that bucked the trend last Friday included Syngene International, IRCTC (Indian Railway Catering and Tourism Corporation), and CDSL (Central Depository Services).
Syngene International has seen a strong breakout of downward sloping resistance trendline and clocked 2.3 percent gains at Rs 749 amid volatility. The stock has formed a bullish candlestick pattern with long upper and lower shadows on the daily charts, indicating volatility in the counter. The stock traded above all key moving averages and saw strong volumes last Friday.
IRCTC has also seen falling resistance trendline breakout and surpassed previous record high with long bullish candlestick pattern formation on the daily charts. The stock rallied 3.4 percent to end at new closing high of Rs 1,058, with healthy volumes, and traded above all key moving averages.
CDSL also ended at record closing high of Rs 2,008, up 6.7 percent and formed robust bullish candlestick pattern on the daily charts with strong volumes. The stock has seen a decisive breakout of consolidation of the recent past sessions and traded well above key moving averages.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Since September 2023, the stock was trending lower forming a series of lower tops and bottoms. However, with the past 3-4 weeks' straight up move, the stock has decisively broken out its "down-sloping trendline" at Rs 746 level, representing trend reversal.
This breakout is also accompanied with huge volumes indicating increased participation. Since the past couple of weeks, the stock is well placed above its 20, 50, 100-day SMA's (simple moving averages) which reconfirms bullish sentiments.
With Friday's up-move, the stock also managed to break its 200-day SMA (Rs 744) which signifies rising strength on the long term horizon. The daily, weekly 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 800-835, with downside support zone of Rs 735-715 levels.
On the daily and weekly timeframe, the stock is in strong uptrend forming a series of higher top and bottoms which denotes strong sustained uptrend. The recent 20 and 50-day SMA signals positive bias on the short term charts.
Huge rising volumes of the past couple of months signifies increased participation. 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 1,155-1,185, with downside support zone of Rs 1,000-990 levels.
With Friday's strong up move, the stock has decisively broken out its couple of months ``multiple resistance" zone at Rs 1,965 levels. This breakout is accompanied with huge volumes indicating buying force.
The daily and weekly "Bollinger band" buy signal indicates increased momentum. Recently the stock has recaptured its 20, 50 and 100-day SMA and rebounded sharply indicating positive bias. The daily, weekly 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 2,125-2,220, with downside support zone of Rs 1,870-1,840 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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