The market is expected to remain positive, continuing to form higher highs, though there may be some intermittent volatility, experts said, adding that the Nifty 50 is likely to face the hurdle on the higher side at 22,500 in the coming sessions with immediate key support at 22,000.
On February 23, the benchmark indices closed flat with a negative bias, with the Nifty 50 falling 5 points to 22,213, and the BSE Sensex declining 15 points to 73,143, while the broader markets were tad better than the benchmarks as the Nifty Midcap 100 and Smallcap 100 indices gained 0.3 percent and 0.4 percent.
Stocks that were backed by bulls last Friday included Indus Towers, Astral, and Computer Age Management Services. Indus Towers has seen a decisive breakout of downward sloping resistance trendline and saw a gap up opening. The stock jumped 7 percent to Rs 241 and formed strong bullish candlestick pattern on the daily charts with healthy volumes. Further, it traded above all key moving averages.
Astral, after several weeks of consolidation, has seen a decisive breakout of downward sloping resistance trendline and formed robust bullish candlestick pattern on the daily timeframe with above average volumes. The stock rallied 5.6 percent to Rs 2,076 and traded above all key moving averages.
Computer Age Management Services also traded above all key moving averages, rising nearly 4 percent to Rs 3,113 and formed long bullish candlestick pattern on the daily scale with significantly higher volumes.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
On the weekly chart, the stock has confirmed its past couple of years ‘multiple resistance’ zone at Rs 232 levels on a closing basis indicating strong comeback of bulls. It has also confirmed a "rounding bottom" formation indicating trend reversal.
Since the last four months volumes are continuously rising indicating increased participation. The stock is sustaining above its 20, 50, 100 and 200-day SMA (simple moving average) and these averages are also inching upward along with rising prices which signifies strong uptrend. The daily and weekly Bollinger band buy signal suggests increased momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 260-285, with downside support zone of Rs 230-215 levels.
Since June 2023, the stock was consolidating within broad range (Rs 2,055-1,770) however with last week's strong upmove of 5 percent it has decisively broken out this range on a closing basis indicating major breakout. This breakout is accompanied with huge volumes indicating increased participation. This consolidation breakout signals continuation of prior uptrend.
The daily and weekly "Bollinger band" buy signal suggests increased momentum. The daily, weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which shows sustained strength. The golden crossover of 20, 50, 100 and 200 day SMA reconfirms bullish trend.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 2,200-2,310, with downside support zone of Rs 2,000-1,960 levels.
Computer Age Management Services
Since December 2021 the stock was consolidating with Rs 2,980-2,040 levels, however with last week's strong upmove of 8 percent it has confirmed "rounding bottom" formation at Rs 3,000 levels indicating strong comeback of bulls.
Last four months rising volumes signifies increased participation. The stock is sustaining above its 20, 50, 100 and 200-day SMA and these averages are also inching upward along with rising prices which signifies strong uptrend.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 3,340-3,540, with downside support zone of Rs 3,000-2,920 levels.
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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