As long as the index holds the previous bullish gap zone of 17,566-17,632, the uptrend is expected to continue till 17,800-17,900-18,000, experts said.
One reason is that FIIs have stopped relentless selling and are now turning buyers, says Santosh Joseph. In fact, he says as time passes, more and more FIIs may come back and even the volumes and investments may increase.
Indraprastha Gas climbed 7.5 percent to Rs 408.1, the highest closing level since January 21 and formed large bullish candle on the daily charts with strong volumes for third consecutive session, following high wave kind of candle formation.
"As per the short term chart pattern, we feel the index will make an attempt to reach its resistance of 17,800 followed by 18,115. Our bullish view shall be negated if we see prices sustaining below 17,350 level," said Vidnyan Sawant, AVP - Technical Research at GEPL Capital
The Nifty50 opened higher at 17,712 and hit a day's high of 17,719, but overall the index remained in a tight range on the higher side, before closing with 124 points gains at 17,659.
Rahul Singh, chief investment officer-equities, Tata Mutual Fund expects the rupee to remain in the 79-80 per dollar range and take broader cues from movements in the dollar Index.
Tata Chemicals share price jumped 12.2 percent to Rs 1,074, the highest closing level since October 19, 2021. The stock had a robust gap up opening and large bullish candlestick pattern formation on the daily charts with significantly higher volumes. It has decisively broken the long down sloping resistance trend line, adjoining October 18, 2021 and May 5, 2022, may be indicating bullish phase. Now the stock is around 7-8 percent away from its record high of Rs 1,158.
Tata Motors is in 'higher top higher bottom' formation on the daily chart which shows an up trend. Besides, the price has taken support at the 200-day moving average before the recent rally, said Rupak De of LKP Securities
Short-side traders should remain neutral and long-side players should keep a stop-loss below 17,440, Mazhar Mohammad of Chartviewindia has said
We believe supply side disruptions, geopolitical tensions, commodity prices & improving domestic demand conditions pose risks to inflation outlook, while the growth seems to be fairly supported by domestic factors.
August has got off to a good start, but evidence is needed to show that this trend is more structural than cyclical
BASF India share price gained 5.4 percent to close at Rs 3,089.1, the highest closing level since March 31, 2022 and formed big bullish candle with large volumes on the daily charts. Also it has broken the long downsloping resistance trend line (adjoining August 11, 2021 and October 18, 2021) on Monday.
Puravankara has broken out on the daily chart on August 5, where it closed at highest level since July 25, 2022. Short term trend of the stock is positive as it is trading above its short term important moving averages.
Nifty has been making higher lows from the last seven weeks and supports are gradually shifting higher. It surpassed its immediate hurdle and is holding above its key moving averages which indicates strength in the ongoing trend to cross an immediate resistance trend line.
Right Horizons remains positive on sectors like banks, auto, infrastructure, capital goods, and pharma, where valuations and earnings continue to be reasonable.
Titagarh Wagons is a classical uptrend where it is witnessing Bullish Flag formation with closing above its 20-DMA (day moving average). The upside momentum is likely to continue for an immediate target of Rs 150 while Rs 115 will act as a strong support level.
The bullish candle formation appears when the market closes above opening levels. Banking & financial services, auto, and metal stocks were the drivers in today's session.
Once global inflation cools off, there may be brisk inflows from FPIs, which may just be around the corner, Sanghavi said.
With another higher bottom formation pattern formed from current levels, further continuation of the strong uptrend in Nifty Auto index can be anticipated with targets of 14,200 and 15,000 levels.
The momentum could get concentrated to fewer stocks and sectors and hence, traders need to be very selective in stock picking for trading, expert advises
Considering the bullish mood, the upcoming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty.
For Prince Pipes, the daily and weekly strength indicator RSI is in a bullish mode, indicating strength in the short to medium- term time frame
For the week, 17,500–17,650 remains a sturdy wall and until it is surpassed convincingly, tentativeness at higher levels will persist
We believe a lot of companies in the small and mid-cap space are ready to outperform, given that they’ve completed or are close to completing their capacity expansions, are sitting on lean balance sheets, generating healthy cash flows and are trading at reasonable valuations post the correction.
The pharmaceuticals sector has witnessed a sharp correction and quality stocks in the sector are available at compelling valuations.