The market snapped a two-day fall and rebounded on August 28 with moderate gains resting on the 19,200-19,250 zone, which is expected to play as a support for the Nifty50 in the coming days and breaking the same decisively can drag it to the 19,000 mark. However, 19,400 on the higher side is likely to be a key hurdle as closing above it can take the index towards 19,600 levels, experts said.

The Nifty50 climbed 40 points to 19,306 and formed a Doji kind of candlestick pattern on the daily timeframe, while the BSE Sensex jumped 110 points to 64,997. The broader markets performed better than frontliners, as the Nifty Midcap 100 and Smallcap 100 indices gained 0.5 percent and 0.7 percent, respectively.

The Bank Nifty played a key role in Monday’s uptrend, rising 263 points to 44,495, while the Nifty IT underperformed, falling 141 points to 30,774.

Stocks that outperformed broader markets included Laxmi Organic Industries, Finolex Industries, and Angel One. Laxmi Organic Industries has seen a decisive breakout of almost four-month consolidation and rallied 8.4 percent to Rs 285.85. It has formed robust bullish candlestick pattern on the daily charts with multi-fold jump in volumes.

Finolex Industries jumped over 4 percent to Rs 220, the highest closing level since November 17, 2021 and formed long bullish candlestick pattern on the daily timeframe with above average volumes. The stock has maintained 10-day EMA (exponential moving average) as a support since the mid of July, while trading way above all short-to-long term key moving averages (50, 100, and 200-day EMA), which is a positive sign.

Angel One climbed 4.6 percent to Rs 1,794, the highest closing level July 5 and formed strong bullish candlestick pattern on the daily scale, after several day of consolidation. The stock is very close to its downward sloping resistance trendline adjoining highs of April 29 last year and August 16, 2023. Hence, whether it is decisively surpassing the trendline or not in coming sessions will be thing to watch out for.

Here’s what Ashish Kyal of Waves Strategy Advisors recommends investors should do with these stocks when the market resumes trading today:

Laxmi Organic Industries

On the daily chart, from May 12, 2023 prices were in a sideways trend and was consolidating in a range of Rs 245-275 levels. Bullish momentum in the previous session helped the prices to give a breakout of this particular pattern and currently prices have closed above it.

We have used Ichimoku cloud. Buying in the previous session helped the prices to give a breakout from the cloud which is an added positive sign. RSI (relative strength index) on the daily timeframe is currently trading in an overbought zone.

So, we can expect some pullback and the RSI to cool down. Pull back towards Rs 280 can be used as a buying opportunity for the target of Rs 305 as long as Rs 245 holds on the downside.

Finolex Industries

Since April 2022, Finolex Industries is trading in an upward tilted channel. From July 12, 2023 price is in an up trend and has gained almost 29 percent. Currently the price is trading near to the channel resistance which comes around Rs 222 levels. A breakout of this particular channel is needed for the price to continue its uptrend.

We have used Bollinger bands. As we can see price has closed above the upper band. If prices managed to sustain this breakout we can expect further upward momentum. In short, a daily close above Rs 222 can take the price higher towards Rs 240 levels as long as Rs 207 holds on the downside.

Angel One

On the daily timeframe looks like prices have made an Inverted head and shoulder pattern which is a bullish pattern. The neck line of the particular pattern comes around Rs 1,845 levels. A break out above the mentioned level is necessary for the prices to move upwards.

In short, Angel One looks bullish. A daily candle close above Rs 1,820 is needed for the prices to move upwards towards Rs 2,100 or higher levels as long as Rs 1,700 holds on the downside.

Follow Ashish Kyal on Twitter – @kyalashish

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.