After a nine-day rally, the market closed in the red on the back of selling pressure in technology stocks, but the Bank Nifty outperformed them on April 17.
The BSE Sensex fell below the psychological 60,000 mark, shedding 520 points to 59,911, while the Nifty50 lost over 120 points to 17,707 and formed a bearish candlestick pattern on the daily charts with long lower shadow but defended not only a downward sloping resistance trendline but also stayed above all key moving averages.
The Nifty Midcap 100 and Smallcap 100 indices performed much better than the benchmarks, rising 0.4 percent and 0.3 percent.
Stocks that we have selected for Trade Spotlight include Nestle India which was the third biggest gainer in the futures & options segment, rising 4 percent to Rs 20,244, the highest closing level since December 22 last year and formed long bullish candlestick pattern on the daily timeframe with strong volumes.
Aditya Birla Capital was also in action, climbing 4.4 percent to Rs 165, the highest closing level since February 28, 2018, with trading above all key moving averages (21, 50, 100 and 200-day EMA). The stock has formed long bullish candlestick pattern on the daily scale with above average volumes.
Power Grid Corporation of India shares rose over 2 percent to Rs 236.65, the highest closing level since September 15, 2022, and formed bullish candlestick pattern on the daily scale with long upper shadow indicating some profit booking at higher levels.
Here’s what Viraj Vyas of Ashika Stock Broking recommends investors should do with these stocks when the market resumes trading today:
Aditya Birla Capital
The stock has been consolidating time and price wise after a brilliant rally that we witnessed from June 2022 till December 2022. The stock is poised for a move towards Rs 185-190 level provided it sustains above the breakout level of Rs 160 which makes it an attractive risk-reward proposition.
Power Grid Corporation of India
The stock has enjoyed strong bullish momentum from October 2020 till April 2022 post which the stock corrected both time and price wise. Until last week, the stock broke above the downward sloping trendline which signalled the start of a new leg of bullish move.
The stock has also broken above a 5-month consolidation zone which signifies accumulation by stronger hands and the stock is expected to move towards fresh life highs of Rs 255-260 provided it sustains above Rs 227-225 zone.
Post Covid lows seen in March 2020, the stock has enjoyed significant rally till about September 2022, when the stock started to consolidate price wise.
The stock on the weekly chart appears to be trading in a Ascending Triangle pattern and a breakout above Rs 20,400-20,500 will have strong bullish implications as the stock can be expected to target Rs 24,000-25,000 with crucial support coming it Rs 19,300-level.
Even on the daily chart, the stock appears to have broken out of a Flag and Pole pattern which augurs well for bullish momentum.
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