[ad_1]
The market rebounded from two sessions of fall with the four-tenth of a percent gains on August 21. The Nifty50, once again, has taken support at 19,300-19,250 levels, which is expected to remain as a support in the coming sessions too and the Option data also indicated the same levels are likely to act as a support. However, on the higher side, 19,400-19,500 levels, where we have seen the maximum Call writing, may be hurdles for the Nifty, experts said.
The Nifty50 surged over 800 points to 19,394, and formed a bullish candlestick pattern on the daily charts, while the BSE Sensex jumped 267 points to 65,216. The broader markets outperformed the benchmark indices, with the Nifty Midcap 100 and Smallcap 100 indices rising 0.82 percent and 0.63 percent.
The Bank Nifty gained for the first time in the last eight sessions, up over 150 points to 44,002, while the Nifty IT has formed a bullish candlestick pattern on the daily charts, rising 334 points or 1.09 percent to 30,938.
Stocks that performed better than the broader markets included JBM Auto, Praj Industries, and Poly Medicure. JBM Auto surged nearly 11 percent to end at record closing high of Rs 1,537, and formed strong bullish candlestick pattern on the daily scale with healthy volumes. The stock has seen a breakout of downward sloping resistance trendline, which is a positive sign.
Praj Industries also ended at record closing high of Rs 499, up 4.4 percent and saw formation of a long bullish candlestick pattern on the daily charts with above average volumes. The stock has seen a breakout of horizontal resistance trendline adjoining highs of August 10 and August 17.
Poly Medicure has formed Bullish Engulfing candlestick pattern on the daily timeframe and settled way above 20-day EMA (exponential moving average) . The stock has rallied 6.6 percent to Rs 1,429 with above average volumes.
Here’s what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:
Poly Medicure
In the previous session, Poly Medicure formed a huge bullish candle. Earlier prices gave a breakout of the Rounding Bottom pattern. Prices continued to rise after retesting the pattern’s neckline which is a positive sign.
Also, wave 4 got completed near Rs 650 levels and since then stock has shown an exceptionally well rally. Currently prices are moving up in form of wave 5. Supertrend indicator continued to show bullish sign suggesting that further bullish momentum is likely to continue.
In nutshell, one can use dips as a buying opportunity to ride the trend with target of Rs 1,550 as long as Rs 1,295 holds on the downside.
JBM Auto
JBM Auto has bounced back on the upside precisely by taking support of the Ichimoku cloud. Further any dip towards the cloud i.e. towards Rs 1,370 levels can be used as a buying opportunity to ride the trend.
Prices are moving well within upward sloping channel and there is still room left on the upside. Prices recently gave breakout of previous swing high which was near Rs 1,535 levels. For now, we need follow up buying for further upward movement to continue.
Along with this, MACD (moving average convergence divergence) has also shown a positive crossover.
In short, everything is in sync and we can expect stock to continue to move up with the targets of Rs 1,600 followed by Rs 1,650. While on the downside, Rs 1,280 levels can act as a near term support.
Praj Industries
Currently, Praj Industries is trading at a record high. In the previous session, the stock showed strong buying throughout the previous session. Prices are moving in higher high higher low manner and is intact in the uptrend.
The stock has formed a rounding bottom pattern on the daily chart. Prices precisely retested the rounded bottom pattern after the breakout and moved upward. During the most recent rise, price managed to stay above its previous swing high, which was near Rs 495 levels. This indicates the strength of the present trend.
In a nutshell, Praj Industries looks bullish. Any dip towards Rs 495 can be used as a buying opportunity which can take prices higher towards Rs 530 as long as Rs 470 holds on the downside.
Follow Ashish Kyal on Twitter – @kyalashish
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
[ad_2]
Source link