We have seen yet another volatile session for the market and the Nifty50 again made a successful attempt of crossing the 19,500 mark, which remains a crucial hurdle, but failed due to selling pressure at higher levels. The benchmark indices closed in red, while the broader markets outperformed the leading indices.
The BSE Sensex dropped more than 200 points to 65,394, and the Nifty50 declined 55 points to 19,384, while the Nifty Midcap 100 and Smallcap 100 indices were up by 0.4 percent and 0.8 percent respectively.
The Bank Nifty continued its lower highs, and lower lows formation for six days in a row, falling 106 points to 44,639, while the Nifty IT declined 207 points to 29,118.
India VIX - the fear index - dropped further and reached near historic low levels, closing at 10.94 levels, down by 0.7 percent from 11.01 levels.
Stocks that were in action and outperformed broader markets included Elgi Equipments, MTAR Technologies, and NCC. Elgi Equipments was the third biggest gainer in the Nifty500 index, rising 7 percent to end at a record closing high of Rs 583, forming a bullish candlestick pattern with a long upper shadow on the daily charts, with robust volumes. The stock has seen a breakout of downward sloping resistance trendline adjoining highs of May 25 and June 27, which is a positive sign.
MTAR Technologies rose 4 percent to Rs 2,032, the highest closing level since March 9, 2022 and formed bullish candlestick pattern with long upper shadow on the daily charts with making higher highs, higher lows formation for second straight session. The stock stayed above 50-day and 200-day EMA since the second half of April.
NCC hit multi-year highs, rising 6.5 percent to Rs 135.75, the highest closing level since March 2008 and formed strong bullish candlestick pattern on the daily scale with healthy volumes. The stock has seen a breakout of small consolidation as well as upward sloping resistance trendline adjoining highs of June 5 and July 6, which is a positive sign.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
For the last month approximately, the said counter has been consolidating between Rs 525-550 which was near 21 EMA (exponential moving average) along with the monthly central pivot range (refer to the chart).
Recently, it gave a clean breakout from its consolidation range along with RSI (relative strength index) reversing from 55 levels, hinting towards bullish momentum in the coming few sessions. One can buy between Rs 590-600 with an upside target of Rs 650 and a stop-loss of Rs 565.
Though the NCC looks lucrative due to the recent up move, but stiff resistance is expected near Rs 138-140. Currently, the bearish AB=CD pattern has formed near its historical top near Rs 140 levels along with negative regular divergence on daily RSI (refer to the chart), which is a matter of concern.
So fresh longs are not advised. But one can book partial profits in the range of Rs 136-140 if already holding position.
We have seen almost a similar setup as above mentioned in Elgi Equipments. MTAR has been consolidating between Rs 1,900-2,000 which was near 21 EMA along with a monthly central pivot range (refer to the chart).
Recently, it gave a clean breakout from its consolidation range along with RSI reversing from 50 levels, hinting towards bullish momentum in the coming few sessions.
One can buy between Rs 2,035-2,045 with an upside target of Rs 2,200 and the stop-loss would be Rs 1,970.
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