Another volatile week of raneg-bound movement in the indices ended on January 20 with the Nifty50 forming a Doji pattern on the weekly charts, indicating indecisiveness among bulls and bears about future market trend, but the index sustained uptrend with making higher high higher low formation while taking support at upward sloping support trendline adjoining June 20, 2022 and January 9, 2023 with cooling down volatility to more than one-month low, raising hope for some upside after current rangebound trade.
The Nifty50 gained 71 points during the last week at 18,028, and the BSE Sensex rose 361 points to 60,622, whereas we have seen selling pressure in broader markets as the Nifty Midcap 100 index declined 0.7 percent and Smallcap 100 index dropped 1.1 percent.
Stocks that were in action during the week included Macrotech Developers which surged 10 percent to Rs 1,122 and formed long bullish candle on the weekly scale with above average volumes. The stock recouped all its previous two-week's losses. It has seen a breakout of long downward sloping resistance trend line adjoining November 29, 2021 and December 26, 2022. Also there was a breakout of horizontal resistance trend line adjoining several touchpoints from September 2021 till January 2023.
NHPC shares also rallied 10 percent to Rs 42.60, the highest closing level since November 21 week of 2022, and decisively broke the consolidation range of previous four weeks. The stock has formed robust bullish candle on the weekly charts with above average volumes. It has seen a breakout of downward sloping resistance trend line adjoining October 24, and November 28, 2022.
Swan Energy was also in focus last week, rising 11 percent to at record closing high of Rs 362 and formed large bullish candle on the weekly timeframe with above average volumes. It has seen a breakout of horizontal resistance trend line adjoining May 2, 2022 and January 2, 2023.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Since past one year the stock was trending down forming a series of lower tops and bottoms however with last week's strong up move the stock has decisively broken out its down-sloping trendline at Rs 1,096 level on a closing basis. This breakout is accompanied with huge volumes denoting increased participation at breakout zone.
The stock is well placed above its 20, 50, 100 and 200 days SMA's (simple moving average) which reconfirms bullish sentiments. The daily, weekly and monthly strength indicator RSI (relative strength index) is placed positively which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,200-1,260 with downside support zone of Rs 1,050-1,000 levels.
The stock is in a strong up trend forming a series of higher tops and bottoms formation. With last week's 10 percent gains the stock has recovered past one month's loss indicating fast recovery. This breakout is accompanied with huge volumes representing increased participation.
The daily band Bollinger buy signals indicates increased momentum. This buying momentum was observed from its weekly up-sloping trendline support of Rs 39 level which remains a positive sign.
The daily, weekly and monthly strength indicator RSI is placed positively which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 50-55, with downside support zone of Rs 40-38 levels.
On the weekly chart, the stock has confirmed "rounding bottom" breakout at Rs 340 level on a weekly closing basis which confirms continuation of uptrend. This recent up move is coupled with huge rising volumes indicating increased participation in the rally.
The stock has registered a new all-time high at Rs 369 representing bullish sentiments. The daily, weekly and monthly strength indicator RSI is placed positively which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 385-410, with downside support zone of Rs 330-320 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.
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.
