The blue-chip NSE Nifty 50 fell 0.21% to 21,733.25 points, while the S&P BSE Sensex shed 0.22% to 72,249.79, as of 9:53 a.m. IST.
The Nifty and BSE Sensex have risen about 20% each this year and are on course for their best month of 2023 with 8% gains.
Stocks that were in focus include names like Tata Consumer, which rose 4.61%, Tata Motors, which jumped 3.38%, and Olectra, whose shares gained 8% on Friday.
Here’s what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.
Tata Consumer – Buy
It has witnessed a breakout of a triangle formation on the longer timeframe with a strong volume and successfully closed above Rs 800 levels. After that, it formed a higher highs and higher lows formation. The structure of the counter is good for long-term investors as it is trading above its important moving averages (50, 100, and 200-DMA).
The momentum indicator RSI (relative strength index) indicates positive momentum, and the MACD (moving average convergence and divergence) is undergoing a bullish centerline crossover.
On the upside, Rs 1100 is a significant psychological level. A breach of this level could propel the stock to Rs 1180 or higher in the near-short term. Conversely, on the downside, Rs 1000 is identified as a major support level that is likely to provide a strong cushion during any corrective moves.
Tata Motors – Buy
Breaking through a multi-year resistance, the security closed above Rs 600 levels and subsequently retested the breakout level before initiating a new upward move toward Rs 800. On the weekly timeframe, a flag formation breakout accompanied by significant volume has been observed. The stock has consistently found support at the 9 and 20-DMA levels and established a pattern of higher highs and higher lows.
On the positive side, Rs 800 represents a crucial psychological level. A breach of this level could propel the stock to Rs 880 or higher in the near term. Conversely, on the downside, Rs. 750 is recognized as a major support level, expected to provide a robust cushion during any corrective moves.
Momentum indicators reveal positive momentum, with the Relative Strength Index (RSI) signaling strength and the Moving Average Convergence Divergence (MACD) undergoing a bullish centerline crossover.
Olectra – Buy
The counter is in a long consolidation range, and it has also formed a double bottom formation. A breakout of an inverse head and shoulder formation occurred above 1350 levels. The structure of the counter is very impressive, as it is trading above all its important moving averages.
The momentum indicator RSI (relative strength index) indicates positive momentum, and the MACD (moving average convergence and divergence) is undergoing a bullish centerline crossover.
On the upper side, Rs 1400 is an immediate resistance; above this, we can expect a big move till 1500+ in the shorter time frame, while on the downside, Rs 1250 is the demand zone for any correction.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
