Considering the consistent uptrend in the Nifty and scaling of a new record high by the benchmark, followed by the formation of a Doji candlestick pattern at the high, which generally acts as a trend reversal, small-time profit-booking can't be ruled out in the market in the coming sessions. The index may find support at the 22,300-22,200 levels, experts said and added that as long as it holds above 22,000, the 22,700-22,800 levels look possible after some consolidation in the market.
On April 1, the Nifty 50 climbed 135 points to 22,462 and the BSE Sensex rallied 363 points to 74,015, keeping up the momentum for the third straight session. The broader markets also participated in the run and outperformed the benchmark indices, as the Nifty Midcap 100 index gained 1.7 percent and Smallcap 100 index 3.3 percent.
Stocks that outperformed the broader markets on Monday included Hindustan Copper, DLF, and Voltas. Hindustan Copper decisively surpassed its previous record high and hit a new high of Rs 312.65. The stock rallied 11.4 percent to end at new closing high of Rs 310 and formed a strong bullish candlestick pattern on the daily charts with healthy volumes, while it traded above all key moving averages.
DLF also ended at a record closing high of Rs 948, up 5.7 percent and formed a long bullish candlestick pattern on the daily timeframe with higher volumes. It has recouped its March losses due to buying in last few days, and traded above all key moving averages.
Voltas decisively surpassed its previous swing high and rallied 4.35 percent to Rs 1,151.6 on the NSE. The stock has formed a strong bullish candlestick pattern on the daily scale, with above-average volumes, and now traded above all key moving averages.
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
In the previous session, almost all the metal stocks were up and showed a classic rise. Hindustan Copper also showed a huge rise in the previous session. Prices gave a close above previous swing high which was near Rs 306 levels and stock made fresh record high near Rs 312.65 levels.
On the daily chart, we have shown Bollinger Bands. Prices have just given a breakout of the upper bands which is a positive sign. Also, volumes are also picking up which is acting as a double confirmation.
In short, overall tone for Hindustan Copper is bullish. After a sharp rally buy on dips looks prudent strategy with the target of Rs 320 as long as Rs 291 holds on the downside.
Voltas has been moving higher recently and intact in strong uptrend. On the daily chart, in the previous session, prices formed a bullish candle.
Price has closed above Rs 1,140 level which confirms breakout of the Rounding bottom pattern. Price is trading above the Ichimoku cloud which indicates that the short-term bias is bullish.
In short, trend for this stock is positive. Use dips towards Rs 1,130-1,140 as a buying opportunity for a move towards Rs 1,260-1,270 levels as long as Rs 1,090 holds on the downside.
On the daily timeframe, DLF is continuously giving close above previous day’s high since past 6 trading sessions. The stock witnessed sharp recovery from recent Ichimoku Cloud support of Rs 810 levels. Additionally, it has broken above its prior swing high which was near Rs 940 levels.
On the daily chart, MACD (moving average convergence divergence) has also shown a bullish crossover which is acting as a double confirmation.
In nutshell, the overall outlook for DLF looks bullish. One can use dips as a buying opportunity with the target of Rs 970 as long as Rs 915 holds on the downside.
Follow Ashish Kyal on Twitter - @kyalashish
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
