The Nifty 50 managed to close above 22,500 at last, but sustainability above this level for few sessions is the key for further upward journey. As, above the same, the index is likely to hit 22,700-22,800 levels, while 22,300 is expected to act as a key support for the index in an immediate term, experts said. Hence, on the overall, the trading range may be 22,300-22,600 for the near term.
On April 4, the Nifty 50 climbed 80 points to 22,515 and formed bearish candlestick pattern with long lower shadow on the daily charts, indicating healthy buying interest at lower levels.
The BSE Sensex rose 351 points to 74,228, while the broader markets have maintained uptrend with the Nifty Midcap 100 and Smallcap 100 indices rising 0.01 percent and 0.45 percent.
Stocks that clocked healthy gains and performed better than the benchmark as well as the broader markets included HDFC Bank, Zomato, and Muthoot Finance. HDFC Bank, after recent consolidation breakout, reached closer to 200-day EMA (exponential moving average) of Rs 1,532. The stock rallied 3 percent to Rs 1,527.6 and formed bullish candlestick pattern on the daily charts with double the volume over previous day. Now, the stock traded above all key moving averages barring 200-day EMA.
Zomato ended at new closing high of Rs 187 on the NSE, up 4.88 percent and formed long bullish candlestick pattern on the daily scale with above average volumes. The stock traded above all key moving averages.
Muthoot Finance jumped over 2 percent to Rs 1,666.55, the highest closing level since November 15, 2021 and formed bullish candlestick pattern with lower shadow on the daily charts. The volumes were on the higher side for last couple of weeks, while the stock traded far above all key moving averages.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:After short-term correction from the higher levels, the counter was trading in a rectangle formation. However, on the daily and weekly charts there is a range breakout in the counter along with decent volume activity, which suggest a new leg of bullish trend in the near term.
Unless it is trading below Rs 1,470 positional traders can retain an optimistic stance and look for a target of Rs 1,640.
The stock has given a breakout of its Ascending Triangle chart pattern on the weekly scale. Additionally, the incremental volume activity of the stock indicates the beginning of a new up move from the current levels.
For positional traders, Rs 1,600 would be the trend decider level. Trading above the same uptrend formation will continue till Rs 1,770. However, if it closes below Rs 1,600 traders may prefer to exit from trading long positions.
After the robust rally on the daily scale, the stock went into the consolidation mode. However, the recent breakout in the stock is representing a bullish continuation pattern signifying a new leg of up move from the current levels.
As long as the stock is trading above Rs 180 the uptrend formation is likely to continue. Above which, the counter could move up to Rs 202. On the flip side, fresh sell off possible only after dismissal of Rs 180.
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