We have seen consolidation in the equity markets after a six-day rally towards fresh record highs, and closed the session on a muted note, July 5, but the broader markets performed much better than benchmarks.
The BSE Sensex fell 33 points to 65,446, and the Nifty rose 10 points to 19,399 and formed Inside Bar kind of pattern on the daily charts, while the Nifty Midcap 100 and Smallcap 100 indices climbed over seven-tenth of a percent on positive breadth.
The Bank Nifty managed to hold on to 45,000 mark, but dropped 150 points to 45,152, while the Nifty IT gained over 100 points to close at 29,842, the highest closing level since March 8.
Stocks that performed better than broader markets included Aegis Logistics, BHEL, and Asahi India Glass. Aegis Logistics rallied 7.6 percent to Rs 353 and formed robust bullish candlestick pattern on the daily charts with strong volumes. The stock closed above 50-day EMA (exponential moving average Rs 351) as well as 200-day EMA (Rs 338) in a single session after a consolidation breakout.
BHEL has also seen formation of robust bullish candlestick pattern on the daily timeframe with significantly higher volumes and stayed above 50-day EMA since second half of April. The stock has seen a decisive breakout of downward sloping resistance trendline adjoining highs of December 5 last year and June 19 this year, and jumped 7 percent to Rs 93.
Asahi India Glass has seen healthy volumes in last three sessions. After decisively surpassing 50-day EMA on Monday, the stock has maintained the same in following sessions and rallied 4.4 percent to Rs 534, the highest closing level since December 21 last year, forming long bullish candlestick pattern on the daily charts.
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:
At the current juncture, the said counter has reversed after making a bullish divergence on a daily scale near Rs 310-320 levels and currently trading near the Rs 350 mark.
One can buy in small tranche in the range of Rs 345-355 and another around Rs 335-340 with a target price of Rs 400 and a stop-loss would be Rs 325 on a daily close basis.
BHEL is in a well-established uptrend as most of the exponential moving averages are supporting its price action. Additionally, the daily RSI (relative strength index) is constantly trading above 50 levels which is a sign of bullishness.
Thus, one can buy between Rs 91-92 with a target of Rs 110 and a stop-loss would be Rs 80.
After making a solid base near Rs 460-500 levels which were also potential reversal zone of the bullish BAT pattern (refer to the chart). Additionally, the said counter has made a bullish divergence near the potential reversal zone (refer to the chart) which is making it lucrative at current levels.
Thus one can buy between Rs 525-533 with an upside target of Rs 600 and the stop-loss would be around Rs 495.
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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