Markets recovered on July 31 after ending in the red for two days, but experts still see major indexes trading in a range until Nifty breaks near all-time highs this is close to 20,000 points, with the critical support at 19,500 points.
We have seen participation from most sectors except for consumer staples which helped Nifty50 rise more than 100 points to 19,754 and the index formed a bullish candlestick pattern on the daily chart, while BSE Sensex rose nearly 370 points to 66,528.
Bank Nifty rose more than 180 points to 45,651, while Nifty IT gained more than 400 points to 29,929 after consolidating the previous eight consecutive sessions.
The broader markets have also joined the rally and are trading better than before on a healthy breadth, with volatility remaining near all-time lows. The Nifty Midcap 100 and Smallcap 100 indexes are up nearly 1% each, with about two stocks rising for every falling stock on the NSE. We have seen a number of stocks outperform the broader markets, including Hindustan Copper, CIE Automotive India and Welspun India. Hindustan Copper has an open and close gap with a gain of more than 10% at Rs 141. The stock has formed a strong bullish candlestick pattern on the daily chart with volume spiked several times, after breaking a downward sloping resistance trendline adjacent to the Jan 19 and Jan 28 highs. July. Shares of CIE Automotive India rose nearly 8% to Rs 510 and crossed the 20 and 50 day EMAs (exponential moving averages). The stock has formed a long bullish candlestick pattern on the daily chart on above-average volume, after forming a Hammer-like pattern in the previous session, which is a bullish reversal pattern. Welspun India has definitively broken the resistance trendline after several days of consolidation, which is a positive sign. The stock rallied more than 9% to Rs 109.65, its highest close since March 10 last year, and formed a strong bullish candlestick pattern on the daily chart on high volume.
Hindustan coin
The Hindustan coin is moving in an impulse pattern from 2020. After ending wave 3 near Rs 196 (which is the largest wave and usually lasts according to wave theory), the price then moves down to Rs 80 and bounces. up from there, complete wave 4 down.
Currently, the main wave 5 is moving higher. The stock also formed an inverted head and shoulders pattern and the neckline broke out near Rs 126.
Headline target projected upside down from the neckline is at Rs 208. As long as Rs 128 holds lower, further upside momentum is likely to continue.
CIE Automotive India
CIE Automotive grew strongly after good quarter results. The action ended with a big gain at the end of the session. Price is moving nicely within an upward sloping channel.
We have shown Bollinger bands. After reversing from the lower bands, the stock had a nice rally. However, the price failed to close above the middle bands. Any close above the mid-bands of Rs 515 with further buying is needed, which could push the price to the upper bands near Rs 570, while Rs 470 could act as short-term support.
Welsh language
On the daily timeframe, as we can see in the chart for the past three months, the price is consolidating in a triangle pattern. Due to a strong move, the price closed above Rs 104, confirming the breakdown of the aforementioned pattern and the sudden increase in volume acted as a double confirmation.
On the other hand, the baseline (red) acts as support and each time the stock moves higher, the same support is received. So, according to this nearest support, it is located at Rs 100.
The trend for Welspun India looks optimistic. Any drop to Rs 105 can be used as a buying opportunity to move into Rs 122 as long as Rs 100 remains on the downside.
