Trade Spotlight: How to deal in Rain Industries, Balkrishna Industries, IDFC First Bank?

About this update from Balkrishna Industries Limited

The market may continue to trade within a range with immediate support at 21,500, followed by 21,300, around the low of the current month. On the higher side, it may face resistance at 21,700, an immediate hurdle, followed by 21,850 area, experts said. If the index decisively breaks 21,300, then major correction may be seen in the Nifty 50.On January 20, the additional trading day of the last week, the BSE Sensex was down 260 points to 71,424, while the Nifty 50 fell 51 points to 21,572 and formed a bearish candlestick pattern which resembles bearish engulfing kind of pattern on the daily charts, indicating weakness.The broader markets fared better than the benchmark indices as the Nifty Midcap 100 and Smallcap 100 indices gained half a percent and 0.2 percent.Stocks that outperformed broader markets last Saturday included Rain Industries, Balkrishna Industries, and IDFC First Bank. Rain Industries has seen strong consolidation breakout of horizontal resistance trendline adjoining multiple touchpoints and climbed more than 9 percent to Rs 164 on the NSE. The stock has formed robust bullish candlestick pattern on the daily charts with significantly higher volumes, and started trading above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving average), which is a positive sign.Balkrishna Industries has also seen a breakout of long horizontal resistance trendline adjoining highs of September 23, 2021 and January 11, 2024. The stock rallied nearly 5 percent to end at record closing high of Rs 2,766 and formed strong bullish candlestick pattern on the daily timeframe with healthy volumes, while trading above all key moving averages.IDFC First Bank has been seeing consolidation for several months now. It climbed 2 percent to Rs 87.70 and formed sizeable bullish candlestick pattern on the daily scale. It has seen higher highs, higher lows formation for yet another session and traded above all key moving averages.Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:Rain IndustriesSince the last 2 months or so, the said counter has been consolidating between Rs 145 and Rs 155. Recently, it has given a breakout from the said range on a weekly closing basis, which is looking lucrative. Having said that, it has also formed a bullish GARTLEY pattern, ...

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