Indian Stock Market Sees Profit Booking, but Outlook Remains Positive
The Indian stock market saw some profit booking on September 18, 2023, following the rally in the current month. However, the overall outlook for the market remains positive, with the Nifty50 index expected to hold above the 20,000-19,900 support zone.
Three stocks that outperformed broader markets on September 18 were Titan Company, Punjab National Bank, and Asahi India Glass.
Titan Company
Titan Company, a leading jewelry and watchmaker, is in a strong bullish trend. The stock has recently hit its all-time high at Rs 3,352 and is currently maintaining these record levels. This indicates a strong bullish sentiment for the medium to long term.
On the technical charts, the stock has formed a bullish breakout from an Ascending Triangle pattern in June 2023. This breakout was accompanied by a significant increase in trading volume, which further confirms the bullish momentum. Additionally, the stock has formed a Change in Polarity (CIP) pattern at the breakout level, which provides additional confirmation of the positive outlook for the stock.
On the daily charts, the stock has also formed a breakout from a rounding pattern, which was accompanied by higher trading volume. This breakout signals a significant upward movement in the stock.
In addition to these technical patterns, the relative strength index (RSI) momentum indicator has remained consistently above the 65 level across all time frames—daily, weekly and monthly. This demonstrates strong positive momentum for the stock.
Overall, the technical outlook for Titan Company is very bullish. Investors can expect the stock price to continue its upward trajectory, potentially reaching Rs 3,675. However, it is important to manage risk effectively by implementing a stop-loss at Rs 3,170 on a closing basis.
Punjab National Bank
Punjab National Bank (PNB), a leading public sector bank, is also in a strong bullish trend. The stock has consistently exhibited a pattern of forming Higher Highs and Higher Lows, and this pattern is accompanied by a noticeable increase in trading volume. This suggests a significant accumulation of the stock, which is driving its prices higher.
In early July 2023, the stock successfully broke out of a Cup & Handle pattern on the weekly charts, indicating the beginning of an upward trajectory. Currently, the stock is trading above both the 12-week and 26-week exponential moving averages (EMA), further reinforcing its bullish trend.
In support of this positive outlook, the RSI is steadily trending upwards and consistently maintaining a level above 65, underscoring the ongoing upward momentum.
Looking ahead, analysts expect the PNB stock price to continue its ascent, potentially reaching a target of Rs 98. However, it is important to manage risk effectively by setting a stop-loss at Rs 66 on a closing basis.
Asahi India Glass
Asahi India Glass, a leading manufacturer of glass products, is also in a bullish trend. The stock has experienced a graceful correction, notably avoiding patterns of Lower Highs and lower Lows, which emphasizes a generally positive sentiment in its price movement.
During the latest trading session, the stock showed a breakout from the Cup & Handle pattern, signalling the onset of an upward trend. This ascent has been bolstered by the support from the 12 & 26-week exponential moving average, reaffirming the presence of an uptrend.
Furthermore, the MACD (moving average convergence divergence) on the weekly charts remains elevated and consistently above the zero line, indicating a continued increase in momentum.
Analysts recommend traders and investors buy this stock further for the target of Rs 692 with the stop-loss being Rs 589 on the closing basis.
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