The market remained under pressure for the second consecutive session on July 24, but the breadth was not very weak with advance decline ratio at 11:10. FMCG, metal, oil and gas, and select banks and technology stocks pulled the market down.
The BSE Sensex dropped 300 points to 66,385, and the Nifty50 fell over 70 points to 19,672 and formed a bearish candlestick pattern on the daily charts. The broader markets were mixed with the Nifty Midcap 100 index down 0.15 percent and the Nifty Smallcap 100 index up 0.37 percent. About 1,109 equity shares declined against 970 rising shares.
Nifty Bank also continued to correct for yet another session, falling 152 points to 45,923, while the Nifty IT remained below the 30,000 mark, declining 28 points to 29,844.
Stocks that outperformed the broader markets included Can Fin Homes, PFC, and Triveni Engineering & Industries. Can Fin Homes shares rallied over 6 percent to end at record closing high of Rs 890 and has formed long bullish candlestick pattern on the daily charts with significantly higher volumes.
Power Finance Corporation has also ended at record closing high of Rs 240, rising nearly 6 percent. The stock has formed long bullish candlestick pattern on the daily charts with strong volumes and remained above 20, 50 and 200-day EMA (exponential moving averages).
Triveni Engineering & Industries has seen a strong gap up opening and formed bullish candlestick pattern with long upper shadow on the daily charts. It has seen smart breakout of consolidation range since December 2022, and closed more than 4 percent higher at Rs 317.
Here's what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
Can Fin Homes continued to show bullish momentum. The stock is moving in a classic impulse manner. Wherein, prices are moving up in form of primary wave 3. On the below chart, we have shown a projection of wave 3 which usually travels to 1.618 times of wave 1. This gives upside target of Rs 944 levels eventually to the final target of Rs 1,146 levels in coming weeks.
Prices are also moving well within upward sloping channel. However, RSI (relative strength index) is in overbought zone, so one should use dips as buying opportunity. On the downside, Rs 810 can act as a near term support.
PFC is currently trading at its lifetime high. On the daily chart, after retesting the channel prices gave a breakout on the upside. So, any dip towards the channel i.e. towards Rs 220 can be used as a buying opportunity.
We have shown Ichimoku Cloud, wherein, base line (red) is providing good support to the trend which is around Rs 218 levels.
The stock is moving up in form of an impulse pattern. As per wave perspective, primary wave 4 got completed with wave 5 higher going on. The stock has shown rally of nearly 140 percent from wave 4 lows. For now, one can use buy on dips approach with the target of Rs 280 levels and with Rs 218 as a support.
Triveni Engineering and Industries
In the previous two sessions, Triveni Engineering has shown good momentum on the upside and has almost gained 14 percent. On the daily chart, in the previous session prices formed a bullish candle. Price has given breakout of the rectangular range.
We have used Ichimoku Cloud and as we can see the prices exactly took support on the clouds and moved up which is a positive sign. Also, KST (know sure thing) indicator has already turned above signal line and also trading above zero line which suggests that further good momentum can continue to be seen.
In short, Triveni Engineering looks bullish. Any move above Rs 326 can take price higher towards Rs 390 which is the pattern target as long as Rs 300 holds on the downside.
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.
Follow Ashish Kyal on Twitter - @kyalashish
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