It looked like a dismal session for the market in the morning but recovery in later part of the day helped it close with moderate losses on December 20.
The BSE Sensex regained 600 points from the day's low and closed down 104 points at 61,702, while the Nifty50 showed recovery from the day's low of 18,200 and ended at 18,385, down just 35 points. The index has formed small bodied bullish candle with long lower shadow which resembles a hammer kind of pattern on the daily charts.
The moderate weakness was also seen in the broader markets as the Nifty Midcap 100 index fell 0.2 percent and Smallcap 100 index declined 0.4 percent.
Stocks that were in action and performed much better than broader markets included Balrampur Chini Mills which was the biggest gainer in the futures and options segment, rising 3.7 percent to Rs 406.35, the highest closing level since June 7, 2022. The stock has formed bullish Engulfing kind of pattern on the daily charts and has seen a breakout of horizontal resistance trend line adjoining August 3 and December 16, 2022.
JK Paper shares rallied 3.5 percent to Rs 440, the highest closing level since August 16 this year and formed another long bullish candle with robust volumes on the daily charts. The stock has given a strong breakout of horizontal resistance trend line adjoining several points - August 12, September 1, September 8 and December 19 this year.
Aster DM Healthcare was also in focus, climbing 3 percent to Rs 228.6 and formed long bullish candle on the daily charts. The stock has given a breakout of long horizontal resistance trend line adjoining several points - July 25, August 29, August 30, November 15, November 22, and December 19 this year.
Here's what Vaishali Parekh of Prabhudas Lilladher recommends investors should do with these stocks when the market resumes trading today:
Balrampur Chini has been steadily on the rise gaining momentum with improving bias moving past the previous peak zone of Rs 390 levels with breakout indication above the triangular pattern formation on the daily chart. It appears poised for further gains in the coming days.
The RSI (relative strength index) has also indicated a trend reversal and has the potential to rise further in the coming days.
We recommend buying and accumulating this stock with an upside target of Rs 460 and keeping a stop-loss of Rs 380.
The stock has indicated a breakout above the trend line connecting the previous peak zones and a formation of an Inverted Head and Shoulder is visible to signify a bullish formation for the stock. The neckline breakout above Rs 430 levels would trigger for further upward movement with expected targets of Rs 500-520 level.
The near-term support can be kept at Rs 430 zone and with the chart looking attractive and bias turned positive, we anticipate for further rise in the coming days.
The stock has formed a double bottom formation near Rs 218 levels and indicating a bullish candle pattern to improve the bias and anticipating further rise in the coming days.
The RSI is well placed and has shown potential to rise further with near targets of Rs 260 and Rs 270 levels.
With the support maintained near Rs 218-220 levels, one can accumulate the stock and anticipate for further upward move in the next one month’s time frame.
