The market has seen profit booking for the second straight day after hitting the highest level of 2023. A correction was seen in most sectors on Friday. For the week ending June 9, the market managed to close with moderate gains.
On Friday, the BSE Sensex fell more than 200 points to 62,626, and the Nifty50 dropped over 70 points to 18,563, while the broader markets closed the session with one-tenth of a percent loss, continuing the downtrend for yet another session.
Bank Nifty witnessed a volatile session flat with a negative bias, while the India VIX, which measures the expected volatility for the next 30 days in the Nifty50, declined by 1.22 percent to 11.12 levels, helping the participants have a stable market outlook.
Stocks that performed better than the broader markets included One 97 Communications (Paytm), Suzlon Energy, and Manappuram Finance. Paytm climbed 5.5 percent to Rs 814.3, the highest closing level since August 11, 2022, continuing the uptrend for the third consecutive session. The stock formed a long bullish candlestick pattern on the daily charts in yet another session, especially after breaking out of the long downward-sloping resistance trendline adjoining the highs of August 8 last year and May 9, 2023.
Suzlon Energy has formed a Bullish Harami kind of pattern on the daily charts and rallied nearly 5 percent to Rs 14. The stock has been in an uptrend after the golden crossover with the 50-day exponential moving average (EMA) crossing the 200-day EMA on May 24.
Manappuram Finance was also in action, rising over 4 percent to Rs 117 and forming a long bullish candlestick pattern on the daily scale with above-average volumes. The stock has given a nice breakout from the consolidation seen over the last month, with the momentum indicator, the relative strength index (RSI), at 57 levels remaining in a positive crossover.
Here's what Rajesh Palviya of Axis Securities recommends investors do with these stocks when the market resumes trading today:
On the weekly time frame, the stock has witnessed a trend reversal, having formed higher tops and higher bottoms. In addition, it has seen a breakout from the 8-10 months "multiple resistance" zone at Rs 745 levels on a weekly closing basis, indicating positive bias. This breakout also was accompanied by huge volumes which signifies increased participation.
Currently, the stock is well placed above its 20, 50, 100 and 200-day simple moving averages (SMAs), which reconfirms the bullish trend. The relative strength index (RSI) on the daily, weekly and monthly charts is in bullish mode which signals rising strength.
The daily and weekly Bollinger Band buy signals indicate increased momentum.
Investors should buy, hold and accumulate this stock with an expected upside to Rs 895-950, and a downside support zone of Rs 707-695 levels.
The stock is in a strong uptrend in the short to medium-term time frame forming a series of higher tops and bottoms. On the weekly time frame, the prices have also witnessed an RSI breakout from the ‘multiple resistance zone’, along with huge volumes, indicating increased participation.
Any short-term correction towards the support zone of Rs 12-11 levels remains a buying opportunity. The weekly and monthly RSI are in bullish mode, which signals rising strength.
The stock is well placed above its 20, 50, 100 and 200-day SMA which reconfirms the bullish trend.
Investors should buy, hold and accumulate this stock with an expected upside to Rs 18-20 levels, with a downside support zone at Rs 12-11 levels.
On the weekly charts, the stock is scaling upward in an ‘up-sloping channel’ forming a series of higher tops and bottoms. Huge volumes near the support zone signify increased participation.
The stock has recaptured its 200-day SMA and rebounded sharply. The daily and weekly RSI is in positive terrain indicating positive bias.
Investors should buy, hold and accumulate this stock with an expected upside to Rs 135-140 levels, and downside support zone of Rs 110-102 levels.
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