Trade Spotlight: How to Handle CDSL, FACT, and Piramal Pharma Counters

 Trade Spotlight: How to Handle CDSL, FACT, and Piramal Pharma Counters

FACT had above-average volumes and a robust bullish candlestick pattern on a daily basis. Positively, the stock moved well above all significant moving averages.

The trend appears to be favorable for bears, who can push the Nifty50 up to the 19,000–18,900 zone amid consolidation in the upcoming sessions, although significant selling pressure appears unlikely. In the event of an uptrend, 19,250–19,300 will be crucial for forming the base for an upward excursion, experts said. On October 31, the Bearish Belt Holds candlestick pattern on the daily charts broke a two-day winning streak.

The BSE Sensex dropped 238 points to 63,875, while the Nifty50 dropped 61 points to 19,080 on October 31. For yet another day, the advance decrease ratio was unchanged. The Nifty Midcap 100 index increased by 0.4 percent while the Smallcap 100 index decreased by 0.06 percent in the larger markets.

Despite the market's fall, purchasing activity was seen in the stocks of FACT, CDSL, and Piramal Pharma. Piramal Pharma surged 9.5 percent to Rs 104.5 on the NSE after breaking above a lengthy downward-sloping resistance trendline that was adjacent to the company's highs on December 1, 2022, and September 7, 2023. The company formed a long, bullish candlestick pattern with an upper shadow on the daily charts, and strong volumes were seen.

Additionally, CDSL witnessed the formation of a strong bullish candlestick pattern on the daily scale with strong volumes and the breakthrough of a slightly downward sloping resistance trendline that was adjacent to numerous contact points. Positively, the stock increased by 6% to Rs 1,456 and traded well above all significant moving averages (20, 50, 100, and 200-day exponential moving averages).

Following a dip the week before, FACT quickly recovered and reached its highest closing level ever on the NSE. With volumes above normal, the stock produced a bullish candlestick pattern on a daily timescale and was trapped in a 10% upper circuit at Rs 756.65. Positively, the stock moved well above all significant moving averages.

When the market opens for business again today, investors should do the following with these companies, according to Ashika Stock Broking's Viraj Vyas:

Services for Central Depositories (CDSL)

Since the lows in March 2020, the stock has performed very well, rising significantly from Rs 180 to Rs 1,680 in a few of months. But after reaching its peak in December 2022, the stock went through a period of both price and time correction.

A significant event occurred in June 2023 when the stock broke above a trendline that was dropping. This breakthrough raises the possibility of a rectangle breakout, which would indicate a big bullish advance.

Piramal Health

Since November 2022, the stock—which is traded as a demerged business from Piramal Enterprises—has been firmly stuck in a sharp downward trend. There are currently indications, however, that the trend could be reversing.

It seems as if the stock is developing a Cup & Handle structure, which is often a sign of accumulation. A confirmation accompanied with a closing above Rs 109 and strong trading volumes may indicate the start of a new positive upsurge in the stock.

Chemicals and Fertilizers in Travancore (FACT)

The stock is showing strong relative performance as compared to the Nifty50 index and is now trading close to its all-time highs. From April 2023 forward, it has been rising, with a string of higher highs and higher lows.

The stock is finding support near Rs 650 levels, indicating a little corrective move after a robust rise, according to the current market action. A breakthrough over Rs 765 could indicate that a new high is imminent.