Bulls hold gains after volatile week, close on positive territory

It was a volatile week for the market players as after a positive start-up, the benchmark index traded higher initially first two days of the week after that the bear came into action and we witnessed further correction on Wednesday trading session, but finally, the bull holds the gain and closed the week at positive territory with the gain of 0.82 percent or 130 points while Bank Nifty was the laggard for the week, settled at 35047.40 levels on Friday session with a weekly loss of 244 points.

On the sectoral front, Nifty IT, pharma, media indices performed outstandingly during the week while metal, financial and auto were sideways. On the stock front, Indiabulls Housing Finance, PowerGrid, NTPC, Coal India and Tech Mahindra were among the top weekly gainers whereas HDFC, Larsen and Toubro, Bajaj Finserv, Bajaj Auto, Vedanta were the top weekly losers. On the Options front, maximum Put OI is at 15,700 strike prices followed by 15,500 while on the call side, maximum OI is at 16,000 followed by 16,200 strike prices, which suggests a broader market range for the upcoming sessions.

Technically, the Index has been rising with Higher Highs and Higher Lows formation from the last couple of weeks. In the recent session, it has confirmed the Bullish Harami Candlestick pattern breakout on the daily chart. On an hourly chart, the index has settled above 9*21 HMA, which suggests a bullish move in the counter. Moreover, an oscillator Stochastic has also suggested positive crossover, which indicates bullish strength for the near term. On a weekly basis, the Nifty may move towards the level of 16,000/16,200 levels while immediate support is intact at 15,650 levels.

Top gainers for week ended June 11

NTPC

On a weekly chart, the stock has formed Open Bullish Marabozu Candlestick Pattern which points. The stock has given breakout of rising wedge pattern which indicate strength in the counter for upcoming days. The stock has been trading with a positive crossover of 21*50 daily Moving Average which can be considered as a Bullish Crossover which shows a Bullish movement in the counter. At Present level Stock has good support at 107 level while resistance comes at 126-130 levels.

PowerGrid

On a weekly chart, the stock has formed an open Bullish Marabozu candle which is a sign of continuation of the bull trend. Stock has given breakout of cup and handle pattern which points out strength in the counter. A momentum indicator RSI and MACD both have shown positive crossover on the daily chart which adds more bullishness to the price. Moreover, Stock has been trading above all the moving averages which further add strength in the counter. At present level, the stock has good support at 223 levels sustains above the 240 level can show new life time high in the counter.

Coal India

On a weekly chart, the stock has been trading in rising wedge formation and tested the upper band of the Wedge formation crossing above it can show further upside rally. Furthermore, the stock has formed “Bullish Marabozu Candlestick '' on a daily chart, which suggests an upside movement in the counter. Furthermore, price has also moved above upper “Bollinger Band '' formation, which suggests bullish rally will continue further for near term. At Present level Stock has good support at levels while resistance comes at 142 level crossing above it can show 170 levels.

Tech Mahindra

On a daily chart, the stock has given a breakout of its “Symmetrical Triangle Formation” which indicates an upside move in the counter. Moreover, the stock is trading above 21 as well as 50-daily Exponential Moving Averages which suggest a positive trend of the stock. Additionally, momentum indicator MACD has shown a positive crossover, which indicates strength in the counter. At present level Stock has good support at 1030 levels while resistance comes at level crossing above it can show 370-390 levels.

HCL Tech

On the daily chart, the stock has given a breakout of consolidation phase and showed a good upside rally. The stock has given a break out of the cup and handle pattern which suggests further upside movement in the counter. Moreover, the stock has formed an “Open Bullish Marubozu” Candlestick pattern on a weekly time frame, which suggests bullish strength in the counter. Furthermore, price has also moved above upper “Bollinger Band” formation, which suggests bullish rally will continue further for near term. An indicator MACD and Stochastic is also a sign of bullish trend for the near term. At present, the stock may find the resistance at 1028 levels while support comes at 930 levels.

Top losers

HDFC

Technically, the stock has been falling down from last one week to close at 2559.80 levels. In the recent candle, it has formed a Shooting Star candlestick pattern on the daily chart, which suggests the bearish move in the counter for the near term. Moreover, the stock has also given a breakdown of the Rising Wedge formation, which indicates a downward move for the upcoming session. The volume activity is also declining from the last many sessions, which confirms the lack of buying interest among the trades. An indicator Stochastic is indicating a negative crossover, which points out the selling pressure. So, on the downside, it may find support at 2440 levels while on the upside, 2635 would act as a resistance zone for the near term.

Larsen and Toubro

The stock has slipped more than 5 percent after making a high of 1583 during the week and settled at 1503.45 levels on the Friday trading session. On a weekly chart, the stock formed a Bearish Harami Candlestick pattern, which indicates a bearish reversal in the counter. Moreover, the stock has also found the resistance at Upper Bollinger Band formation and turned downward. A momentum indicator RSI (14) & Stochastic have suggested negative crossover on the daily chart. However, the prices are still hovering above Ichimoku Cloud formation, which confirms limited downside and support at around 1450 levels. So based on the above-mentioned technical aspect, we are recommending a buy on dips strategy in L&T.

Bajaj Finserv

During the week, the stock traded slightly lower and corrected almost 2 percent to close at 11907.50 levels. Overall, the stock is in a bullish trend and making Higher Highs & Higher Lows formation, which is a trend continuation pattern and initiates buying strength for the long term. Moreover, the Super Trend indicator and stochastic witnessed a positive trend in the counter. So based on the above technical structure, the stock may show a good upside move in the upcoming sessions.

Bajaj Auto

During the week, the stock has traded sideways to lower with a minor fall of 1.8 percent on a weekly basis. However, it has taken immediate support at the Middle Bollinger Band formation and settled at 4172.50 levels on the Friday trading session. Moreover, it has also found support at the rising trendline and 21-Days Moving Averages, which indicates reversal from the support zone.

ONGC

Last week, we witnessed a good rally in ONGC from 111.40 to 126.70 levels, but in recent weeks, the price has exhausted and traded in the narrow range throughout the week. On a weekly chart, the stock has confirmed Cup and Handle pattern breakout, which is a bullish continuation pattern. Moreover, the stock has been trading above 9&21 days Moving Averages with positive crossover, which indicates a bullish presence in the counter. However, on the daily chart, the stock has slipped below Upper Bollinger band formation and also indicated negative crossover in the stochastic oscillator, which suggests a downside move. Hence, we are recommending buy-on-dips strategy in ONGC for the coming week.

(The writer is Executive Director, Choice Broking)


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