Trade Spotlight | Your trading blueprint for Hindalco Industries, UPL, Bank of India today
Hindalco Industries has seen a breakout of downward sloping resistance trendline adjoining highs of January 18, September 4 and September 12, with a strong volumes, which is a positive sign.
According to market experts, the market is likely to consolidate unless the Nifty50 closes above 20,200 levels, which could push it towards 20,500. The bulls are expected to receive good support if they hold on to the support area of 19,900-19,800.
On September 14, the benchmark indices closed higher, with Nifty50 hitting new highs, following a global uptrend.
The Nifty50 jumped 33 points to 20,103, and the BSE Sensex rose 52 points to 67,519. Nifty Midcap 100 and Smallcap 100 were stronger than benchmarks, rising over a percent each on positive breadth.
The Bank Nifty closed at 46,001, up 91 points, but requires to hold the same for further upmove. Nifty IT closed above 33,000 levels for the first time since April 13 last year, rising 159 points to 33,045.
Stocks that fared better than broader markets including Hindalco Industries, UPL, and Bank of India. As a positive sign, Hindalco Industries has seen a breakout of downward sloping resistance trendline adjoining highs of January 18, September 4 and September 12, with strong volumes. The index jumped 3 percent to Rs 497.35, and formed a bullish candlestick pattern with a long upper shadow on the daily charts, indicating profit booking at higher levels.
UPL seems to have bottomed out in August as it maintained upward trend despite intermittent corrections. The stock has formed a strong bullish candlestick pattern on the daily charts and closed nearly 4 percent higher at Rs 631.75, with robust volumes. It has taken support at 21-day EMA (exponential moving average of Rs 607) and closed above 50-day EMA (Rs 619).
Bank of India has seen a breakout of a long falling resistance trendline adjoining highs of January 7, 2019, and December 15, 2022, on September 13. This was followed by the formation of yet another bullish candlestick pattern on the daily timeframe on September 14. The trading volumes remained robust on both days, which is a positive sign. The stock rose 3.6 percent to Rs 107.25.
Here’s what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
Hindalco Industries
On the weekly scale, the counter is into a rising channel chart formation with higher high and higher low series patterns. Technical indicators like RSI (relative strength index) and MACD (moving average convergence divergence) also indicate further uptrend from current levels which could boost the bullish momentum in the coming horizon.
As long as the counter is trading above Rs 480, the uptrend formation is likely to continue. Above this, the counter could move up to Rs 535.
UPL
The counter is trading in an upward trend from the past many sessions. Moreover, the counter has formed an Inverse Head and Shoulder chart pattern on the daily charts. Therefore, sustaining above the breakout of the range indicates a new leg of uptrend from the current levels.
For the traders, Rs 605 would be the key support level to watch out for. Above this the uptrend structure should continue until Rs 680.
Bank of India
The stock has shown a remarkable upmove in the last few months. The stock is trading in a rising trend continuously and forming the higher lows series. The strong bullish momentum on daily and weekly scale suggest that the counter is likely to maintain a bullish continuation chart formation in the coming horizon.
As long as the counter is trading above Rs 102 the bullish formation is likely to continue. Above this, the counter could move up to Rs 115. On the flip side, a fresh sell-off is possible only after the dismissal of Rs 102. Below the same, it could retest the level of Rs 97.
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