With the market in an upbeat mood after a three-state victory of the BJP and a better-than-expected GDP data for Q2FY24, backed by favourable global cues, consistent funds flow from FIIs and DIIs, and continuation of higher highs, higher lows formation with strong volumes for a week now, experts expect the trend to remain in the favour of bulls which can take the Nifty50 towards 20,900-21,000 levels in coming days with immediate support at 20,600-20,500 levels.
On November 4, the benchmark indices hit a historic high and recorded the biggest single-day gain in more than a year. The Nifty50 jumped 419 points or 2.07 percent to 20,687, and the BSE Sensex rallied 1,384 points or 2.05 percent to 68,865, while the Nifty Midcap 100 and Smallcap 100 indices 1.2 percent and 1.4 percent.
Stocks that participated in Monday’s bull run included Federal Bank, HDFC Bank, and ABB India. Federal Bank rose 3.6 percent to end at record closing high of Rs 154.05 and formed bullish candlestick pattern with long lower shadow on the daily charts, with above average volumes. The stock traded above all key moving averages (20, 50, 100 and 200-day EMA – exponential moving average), which is a positive sign.
HDFC Bank has decisively broken its downward sloping resistance trendline adjoining highs of July 3 and September 15, and formed bullish candlestick pattern with lower shadow on the daily scale. The stock opened above 200-day EMA and finally got back above all key moving averages. It climbed 3.5 percent to Rs 1,609 with above average volumes.
ABB India has also seen a breakout of falling resistance trendline adjoining highs of September 11 and November 30, and formed strong bullish candlestick pattern on the daily charts with healthy volumes. The stock jumped 5.6 percent to end at record closing high of Rs 4,630.75 and traded above all key moving averages.
HDFC Bank has been rising over the past few days. HDFC Bank is following 53-day’s time cycle very well and we can clearly see that prices are forming low every time it approaches near to this cycle. Time Cycle helps to understand if the overall trend is going to reverse back on upside.
As shown in below chart prices are bouncing back every 53 days. Recently prices made a low near our cycle which was near Rs 1,460-1,470. Following that, the stock reversed to the upside and is still in an uptrend.
Prices closed above the previous day’s high in the previous session, indicating a positive signal. Furthermore, prices have recently closed above the Ichimoku cloud. So, Time cycle, Indicators, and Price action are all in sync, indicating that the outlook for this stock is positive.
In short, trend for this stock is positive. Use dips as a buying opportunity for a move towards Rs 1,650 levels as long as Rs 1,560 holds on the downside.
ABB has been increasing continuously over the past few days. In the previous session, prices formed a large bullish candle on the daily chart. The price closed at Rs 4,630 levels. Breakout of the Rounding Bottom is still pending. Any close above Rs 4,680 will confirm the breakout of the rounding bottom pattern. The stock is trading above the ichimoku cloud which indicate that the short-term bias is bullish.
In short, trend for this stock is positive. A break above Rs 4,680 can lift price higher towards Rs 4,900-4,950 as long as Rs 4,440 holds on the downside.