The market has maintained higher highs, higher lows formation on the daily charts indicating the possibility of an uptrend continuation in the coming days. The benchmark indices are already at a new record high and given the optimism, experts feel the Nifty 50 is likely to march towards 22,600-22,700 with support at 22,200 level, but in between 22,500 is expected to be crucial for the index direction going ahead.
On March 7, the benchmark indices saw record closing high with the Nifty 50 rising 20 points to 22,494 and the BSE Sensex climbing 33 points to 74,119 amid volatility, while the broader markets rebounded after recent correction, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.2 percent and 0.85 percent respectively.
Moneycontrol selected three stocks that outperformed the broader markets on March 7 which included Tata Power, Chambal Fertilisers and Chemicals, Cholamandalam Investment and Finance. Tata Power, after recent consolidation, has surpassed its previous record high and clocked 7.7 percent gains to end at new closing high of Rs 425 with robust volumes. The stock traded above all key moving averages, which is a positive sign.
Chambal Fertilisers and Chemicals has seen a decisive breakout of downward sloping resistance trendline adjoining highs of January 4 and February 7 this year, and recorded 4 percent rally at Rs 373, with strong volumes. With Thursday's rally, the stock traded above all key moving averages.
Cholamandalam Investment and Finance has seen decisive rebound of 6 percent to Rs 1,083 with healthy volumes, after hitting a nearly seven-month low in the previous session. The stock has formed a long bullish candlestick pattern on the daily charts.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading on Monday:
After the robust rally on the weekly scale, the stock went into consolidation mode. However, the recent breakout in the stock represents a bullish continuation pattern signifying a new leg of up move from the current levels.
For positional traders, Rs 412 would be the trend decider level. Trading above the same, uptrend formation will continue till Rs 460. However, if it closes below Rs 412, traders may prefer to exit from trading long positions.
Chambal Fertilisers and Chemicals
Post the 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 355, positional traders can retain an optimistic stance and look for a target of Rs 400.
Cholamandalam Investment and Finance
The counter was into a sloping channel from the past few weeks. Eventually, its downward move stopped near the important demand zone. Moreover, the strong rebound in the counter from its demand zone on daily and weekly scale suggests that the bullish momentum to remain in the near future.
For traders, Rs 1,040 would be the key support level to watch out for. Above this, the uptrend structure should continue until Rs 1,160.
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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