The late recovery in trade helped the market return to black and form a bullish candlestick pattern on the daily charts on August 16. Overall, the rangebound trade is expected to continue, until the Nifty decisively breaks 19,300-19,250 on the lower side, or surpasses the 19,500-19,600 area on the higher side to get a firm trend going forward, experts said.
The Nifty50 climbed over 30 points to 19,465, and the BSE Sensex surged 138 points to 65,539, while the breadth remained positive and the broader markets rebounded in Wednesday's trade, as the Nifty Midcap 100 index was up 0.08 percent and Smallcap 100 index gained 0.6 percent.
We have seen continued selling pressure in the Bank Nifty, which lost 145 points to 43,946, while the Nifty IT maintained uptrend, rising 183 points to 31,212, with making higher high, higher low formation on the charts.
Stocks that outperformed broader markets included Uno Minda, Jubilant Pharmova, and Nazara Technologies. Uno Minda has seen a strong breakout of several weeks' consolidation, as well as long downward sloping resistance trendline breakout on the daily charts. The stock jumped 5 percent to Rs 613.80, the highest closing level since December 28, 2021 and formed robust bullish candlestick pattern on the daily scale, with multi-fold jump in volumes.
Jubilant Pharmova has seen Bullish Engulfing kind of pattern on the daily charts, rising 6 percent to Rs 458, the highest closing level since May 2, 2022 and recouped all its previous two-day losses.
Nazara Technologies shares rallied 5.2 percent to Rs 696.65 and formed long bullish candlestick pattern on the daily timeframe, with trading above all key moving averages, while on the weekly charts, the stock still continued to trade within the range of July 14's week.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
After making the top Rs 925 in May 2021, it has nose-dived, resulting in a 71 percent cut in price. Between June 2022 - March 2023 it has made a solid base near Rs 300 levels and has reversed nicely from those levels.
Additionally, it has made a Bullish BAT pattern on a weekly scale along with bullish divergence i.e., the price was making lower lows and RSI was making higher lows.
So, one can buy in the range of Rs 440-455 with an upside target of Rs 525 and the stop-loss would be Rs 375 on a daily close basis.
At the current juncture, the said counter has been sustaining above all major daily exponential moving averages. Moreover, on the indicator front, the daily RSI (relative strength index) has rebounded from 45 levels which is hinting further bullish bias in the counter.
One can buy in the range of Rs 685-695 with an upside till Rs 750 and the stop-loss would be around Rs660 on a daily close basis.
Though the said counter looks lucrative due to the recent rallies, one needs to be cautious since it is approaching its historical top of Rs 628.
Additionally, monthly RSI is not overbought yet so that could be a concern for fresh longs. Book profits in the range of Rs 618-625 if already bought. For fresh longs wait and watch until it doesn't sustain above Rs 630.
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.
