The Indian stock market closed on a positive note last Friday, with the Nifty 50 and BSE Sensex ending higher. The Nifty 50 crossed the 24,350 mark closing at 24,367.50 a gain of 250.50 points or 1.04%. The Sensex also followed a similar upward trajectory climbing 819.69 points to end at 79,705.91. The Nifty Bank saw a more modest gain rising by 327.80 points to close at 50,484.50
Nifty 50 Index: TradingView
Despite the bullish close, the Nifty 50 has shown signs of potential bearish movement. After dropping and closing below its previous higher low at Rs 24,074, the Nifty 50’s trajectory suggests a bearish sentiment. Similarly the Sensex has displayed similar behaviour after its price fell below Rs 77,223 creating a sense of uncertainty, leading market analysts to closely monitor these indices over the coming days to gauge the market’s overall direction.
The key question now is whether we are heading towards a sustained downtrend or if the recent dip was merely a correction, setting the stage for a renewed bullish momentum.
As we look ahead to the upcoming week, it’s important to note that the NSE India Stock Market will be closed on Thursday, 15 August 2024 in observance of Independence Day. This holiday might result in reduced trading activity, with traders likely positioning themselves ahead of the mid-week closure.
In this environment, five stocks stand out as critical to watch in this coming week. These stocks have demonstrated technical patterns that could provide opportunities for traders.
Hindustan Unilever is currently trading at a crucial resistance zone of Rs 2,747. The stock has been testing this level severally getting rejections and a breakout above could push the price towards the next target of Rs 2,859. However, if the stock faces rejection at this level again, it might retrace to a lower ascending trendline providing a potential buying opportunity at a lower level.
Nifty 50 Index: Hindustan Unilever
Bajaj Auto has also shown impressive bullish momentum with the current price standing at Rs 9,765.95. The stock has been on an upward trajectory since bouncing off the Rs 8,744 support level on July 23rd. The next key target for Bajaj Auto is Rs 10,037, a level that traders should watch closely for potential resistance. If the stock manages to break this target it could signify continued bullish momentum in the coming sessions.
ITC Limited has also been on a bullish run with the current price at 495. The stock recently broke out of a bullish pennant pattern in mid-July at 460 and rallied to a high of 510. The next target for ITC is to retest the recent high of 510. However, if the stock experiences a pullback the 450 level where the bullish pennant support lies could act as a retest support providing a potential entry point for traders.
Coal India is another stock to keep an eye on currently trading at 529.80. The stock has been respecting an ascending trendline which has supported its bullish movement. The next target for Coal India is 542, a level that could be reached if the bullish momentum continues. Should the price retrace the ascending trendline below will act as a key support level to watch.
Adani Enterprises is currently trading at 3,187, also in a bullish phase. The stock has been respecting an ascending trendline similar to Coal India. The next target for Adani Enterprises is 3,743. In case of a retracement, the price is expected to pull back to the ascending trendline which could serve as a potential support level.
In conclusion, while the overall market showed strength last week, certain technical signals suggest caution. Closely monitor the price action of these five stocks, particularly around their respective resistance and support levels to capitalize on potential opportunities. The upcoming holiday on 15 August 2024 may also influence trading volumes, so it’s essential to be prepared for any market shifts.
