On December 28, the monthly F&O expiry day, the Nifty 50 reached 21,800 for the first time. It now appears that it will reach the psychological 22,000 milestone in the first few days of January. However, in order for that to happen, the index must clearly break through and hold the 21,800 levels. In the meanwhile, experts stated that the market will find support in the range of 21,700 to 21,500, and that overall, the momentum is still in favor of bulls.
The benchmark indexes ended the day on December 28 with a new closing all-time high. The BSE Sensex was up 372 points at 72,410, and the Nifty 50 surged 124 points to 21,779, forming a bullish candlestick pattern on the daily charts.
Nifty Midcap 100 and Smallcap 100 indexes rose 0.6 and 0.8 percent, respectively, and maintained their bullish trend despite a breadth that favored bearish.
Gujarat State Petronet, Steel Authority of India, and Hindustan Petroleum Corporation were among the stocks that saw purchasing interest on Thursday. After several days of consolidation, Hindustan Petroleum Corporation saw a breakout and registered gains of 9.4% at Rs 418 on the NSE. On the daily charts, the stock has created a strong bullish candlestick pattern with a lengthy upper shadow and strong volumes.
It has been trading above all significant moving averages for almost a couple of months now—the 20, 50, 100, and 200-day exponential moving averages—which is encouraging.
For four days in a row, Steel Authority of India made higher highs and lower lows; on Thursday, it increased 6.4 percent to Rs 123 with robust volumes. On a daily scale, the stock developed a strong bullish candlestick pattern and traded above all significant moving averages.
On the daily timeframe, Gujarat State Petronet generated a strong green candle with a sizable upper shadow and healthy volumes, after a breach of the downward-sloping resistance trendline that was adjacent to the highs of June 16 and December 12. To close at Rs 308.6, the stock increased 4.7%, the highest since February 7, 2022.
When trading on these companies begins today, investors should do the following, according to Kotak Securities’ Shrikant Chouhan:
Hindustan Petroleum Company
On a daily scale, the stock has broken out of its Ascending Triangle trend pattern. Furthermore, it has developed a higher bottom formation and increased volume activity; as a result, the stock’s structure suggests that a fresh up advance from the current levels is about to commence.
For traders that trade positionally, the trend-deciding level would be Rs 400. The same uptrend structure will be traded above until Rs 450. However, traders would want to give up on long positions if it closes below Rs 400.
India’s Steel Authority (SAIL)
The counter is in a rising channel chart formation with a higher high and higher low series pattern on a daily and weekly basis. The average directional index (ADX), a technical indicator, is also showing an upward trend from the current levels, which could strengthen the positive momentum in the near future.
The counter is expected to continue its uptrend formation as long as it is trading above Rs 117. The counter may advance to Rs 132 above that.
State of Gujarat Petronet (GSPL)
The counter had been in a rangebound position for the previous few weeks on the weekly charts. In the end, it produced a range breakout and a higher bottom series. As a result, the closing above the resistance line suggests that the current levels will see more positive momentum.
The support level for traders who follow trends would be Rs 295 in this case. It might rise to values of Rs 330 above that.
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