The Nifty 50 is likely to consolidate further in the truncated week starting December 26. For any uptrend, the index needs to decisively break out of its record high of 21,593, whereas on the downside, it may take support at the 21,200-21,000 levels as breaking of the same can drag it towards the 20,800 mark, experts said.
On December 22, the Nifty 50 climbed 94 points to 21,349, and the BSE Sensex gained 242 points to 71,107, while the broader markets performed better than the benchmarks as the Nifty Midcap 100 and Smallcap 100 indices gained 0.7 percent and 1 percent respectively.
Stocks that recorded strong gains in the last trading day included Wipro, Laurus Labs, and Cummins India. Wipro registered 6.6 percent rally in a single day after a long time, after decisively breakout of long horizontal resistance trendline. The stock has formed robust bullish candlestick pattern on the daily charts with strong volumes. The stock settled at Rs 462.65, the highest closing level since June 9 last year.
Laurus Labs climbed 4.4 percent to Rs 414.55 and formed long bullish candlestick pattern on the daily charts with robust volumes. The stock has traded above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving averages).
Cummins India ended at record closing high of Rs 2,013, up 3.7 percent on Friday, continuing uptrend for second consecutive session. The stock has formed healthy bullish candlestick pattern on the daily scale with above average volumes and 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:
With the past six consecutive week's gain, the stock has decisively broken out its "multiple year" consolidation zone breakout at Rs 448 levels on a closing basis which signals strong come of bulls. This breakout is accompanied with huge volumes which signifies increased participation.
The stock is well placed above its 20, 50, 100 and 200-day SMA (simple moving average) and these averages are also inching up along with rising prices which reconfirms bullish trend. Weekly bollinger band buy signal supports rising momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 490-515, with downside support zone of Rs 445-430 levels.
Since August 2023, the stock was consolidating within Rs 410-350 levels. However with last week's 8 percent upmove , the stock has witnessed "down-sloping" trendline breakout at Rs 406 levels on a weekly closing bais. This consolidation range was supported by the 200-day SMA (Rs 357) which remains a positive bias.
This breakout is accompanied with huge volumes which indicates rising participation in the rally. The positive crossover of 20 and 50-day SMA signifies bullish momentum in near term. The daily weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which supports rising strength across all the time frame.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 440-480 with downside support zone of Rs 397-385 levels.
The stock has registered a new all-time high at Rs 2,025 levels which signals bullish sentiments. The stock is in a strong uptrend forming a series of higher tops and bottoms across all the time frames which supports the bullish trend.
On the weekly time frame, the stock has reconfirmed "rounding bottom" formation breakout at Rs 1,970 levels on a weekly closing basis. During the week, the stock has recaptured its 20-day SMA support at Rs 1,939 and rebounded sharply indicating strong comeback of bulls.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,110-2,200, with downside support zone of Rs 1,927-1,885 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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