After consolidation in a range of around 150 points in the previous four days, the Nifty50 broke the 19,500 mark on the downside on August 11, continuing a southward journey for the second consecutive session.

This month’s low of 19,300, which also acted as a support before the rally in the second half of July, is expected to be the next crucial support for the index in the near term, whereas 19,500-19,650 is likely to be the key resistance area going ahead, experts said.

The Nifty50 has formed a long bearish candlestick pattern on the daily charts, and closed at 19,428, down 115 points, while the BSE Sensex fell more than 360 points to 65,323.

The broader markets also corrected, but less than benchmarks. The Nifty Midcap 100 index was down half a percent and Smallcap 100 index fell 0.2 percent as the market breadth was in favour of bears with 2:3 ratio.

The Bank Nifty has also broken its near term support of 44,400-44,500 levels, and fell over 340 points to 44,199, while the Nifty IT continued to consolidate after recent rally, declining nearly 50 points to 30,819.

Stocks that outperformed the broader markets included Indian Overseas Bank, RHI Magnesita, and Hindustan Copper. After several months of consolidation, Indian Overseas Bank has seen a decisive breakout on last Friday and rallied more than 13 percent to Rs 30.55. The stock has formed a robust, bullish, candlestick pattern on the daily charts with multi-fold jump in volumes, which brought more positivity in the counter.

RHI Magnesita has seen a breakout of downward sloping resistance trendline as well as the consolidation started since the second half of February, and rallied 7.4 percent to Rs 724. The stock has formed strong bullish candlestick pattern on the daily charts with significantly higher volumes. The closing above the bearish gap of February 14 may be crucial for next up-move in the counter.

Hindustan Copper also climbed over 7 percent to Rs 159, the highest closing level since June 15, 2021, and formed a robust bullish candlestick pattern with strong volumes, after consolidation in the previous seven consecutive sessions. In fact, the volumes in the counter largely remained strong for last couple of weeks.

Here’s what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:

Indian Overseas Bank

On the daily chart, the stock has decisively broken out its past one-year “consolidation” (Rs 29-22) range on a closing basis indicating a strong comeback of bulls. This breakout is accompanied by huge volumes indicating increased participation in the breakout.

The stock has recaptured its 20-day SMA (simple moving average) and rebounded sharply. The stock is holding and sustaining above its 50, 100 and 200-day SMA which reconfirms bullish sentiments.

The daily and weekly “Bollinger band” buy signal indicates increased momentum. The daily weekly and monthly strength indicator RSI (relative strength index) is in bullish mode which shows rising strength across all the time frames.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 35-40 with downside support zone of Rs 29-27 levels.

RHI Magnesita

The stock has observed a strong “consolidation” for last 6-7 months within Rs 713-585 levels. However with last Friday’s rally, the stock has decisively broken out of this consolidation on a closing basis indicating strong buying force.

As stock is sustaining above its 20, 50, 100 and 200-day SMA which reconfirms bullish sentiments in short to medium term. Last three weeks rising volumes signify increased participation at lower levels. The daily and weekly RSI positive crossover signals rising strength.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 800-820, with downside support zone of Rs 700-660 levels.

Hindustan Copper

With past couple of weeks’ strong momentum, the stock has broken out its two years consolidation (Rs 150- 85) along with huge volumes indicating increased participation.

The weekly and monthly “Bollinger band” buy signal shows rising momentum. On the daily chart, the stock has also confirmed a “rounding bottom” breakout at Rs 134 levels indicating trend reversal. The stock is sustaining above its 20, 50, 100 and 200-day SMA which reconfirms bullish sentiments in short to medium term.

Investors should buy, hold and accumulate this stock with an expected upside of Rs 180-200, with downside support zone of Rs 145-134 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.