The Nifty 50 had a strong finish for the monthly F&O expiry session, climbing above the falling resistance trendline from record-high levels. This has raised hopes for a promising start to the April series, which begins on Monday, April 1. As long as the index remains above 22,300, experts predict that it is likely to reach a new record high in the coming days. The key support level to watch out for is 22,000. On March 28, the Nifty 50 rose by 203 points to reach 22,327, and the BSE Sensex gained 655 points, with the broader markets underperforming the benchmark indices. The Nifty Midcap 100 index increased by half a percent, while the Smallcap 100 index rose by 0.04 percent.
Stocks that were among the biggest gainers and outperformed benchmarks included Canara Bank, Bajaj Finance, and Eicher Motors. Canara Bank rallied 3 percent to Rs 581 after recent consolidation and climbed above all key moving averages. The stock has formed a bullish candlestick pattern on the daily charts with above-average volumes.
Bajaj Finance extended an uptrend for the seventh consecutive session, rising 3 percent to Rs 7,245 on the NSE. With last Thursday's strong run, the stock firmly got back above all key moving averages and formed long bullish candlestick pattern on the daily timeframe with robust volumes. The volumes have been on the rise for more than a week now.
Eicher Motors also gained nearly 3 percent to close at Rs 4,019 and formed a long bullish candlestick pattern on the daily scale with healthy volumes. The stock traded above all key moving averages and is now 181 rupees away from its record high of Rs 4,200 seen on December 4, 2023.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
Post-short-term correction, the counter was in a consolidation mode in a triangle formation. However, it has given a breakout of its Symmetrical Triangle chart pattern with a strong bullish candlestick pattern.
Moreover, on the daily charts, it has formed a higher bottom formation, therefore the structure of the counter indicates further bullish momentum from the current levels. Unless it is trading below Rs 560, positional traders can retain an optimistic stance and look for a target of Rs 620.
On the daily scale, the counter is into a rising channel chart formation with higher high and higher low series pattern. The technical indicators like ADX (average directional index) is also indicating further up trend from current levels, which could boost the bullish momentum in coming horizon.
As long as the stock is trading above Rs 6,980 the uptrend formation is likely to continue. Above which, the counter could move up to Rs 7,750. On the flip side, fresh sell-off possible only after dismissal of Rs 6,980.
After short-term correction from the higher levels, the counter was trading in a rectangle formation. However, on the daily and weekly charts there is a range breakout in the counter along with decent volume activity, which suggest a new leg of bullish trend in the near term.
Unless it is trading below Rs 3,880 positional traders can retain an optimistic stance and look for a target of Rs 4,300.
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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