The benchmark indices fell nearly half a percent on June 22, as bears looked aggressive. We have seen selling pressure in most sectors, barring metals. The disappointing global cues after hawkish Fed commentary also weighed on sentiment.
The BSE Sensex declined 284 points to 63,239, and the Nifty50 dropped 85 points to 18,771, while the market breadth was also weak. Nearly three shares declined for every two advancing shares on the NSE.
We have seen correction in the broader markets, too, especially after rising for the previous eight consecutive sessions. The Nifty Midcap 100 index slipped 1 percent and the Nifty Smallcap 100 index declined 0.8 percent.
Bank Nifty was down third of a percent, while Nifty IT lost seven-tenth of a percent.
Stocks that were in action included Aether Industries, BSE, and JBM Auto. Aether Industries ended at record closing high of Rs 1,166 on Thursday, rising 6 percent with strong volumes, and formed bullish candlestick pattern with long upper and lower shadows on the daily charts, indicating there was volatility in the counter. The stock has seen healthy breakout in previous session itself, especially after several months of consolidation.
BSE shares rose 5.4 percent to Rs 603, the highest closing level since October 27, 2022, and formed bullish candlestick pattern on the daily charts with robust volumes. The stock has seen a consolidation breakout, while it has been forming higher highs, higher lows since April.
JBM Auto climbed 2 percent to end at record closing high of Rs 1,040 and formed bullish candlestick pattern on the daily scale. On the weekly basis, the stock has maintained higher highs, higher lows for fifth consecutive week.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today.
The stock registered a fresh all-time high of Rs 1,209. Despite weak market conditions, the stock maintained its strong momentum throughout the day on Thursday.
In the short-term period, the stock has formed promising breakout formation. The texture of the pattern suggests breakout action will continue in the near term, if it succeeds to trade above Rs 1,110 level.
For the swing traders, now Rs 1,110 would be the sacrosanct support level. Trading above the same we can expect an uptrend continuation wave up to Rs 1,250. On the other side, below Rs 1,110, traders may prefer to exit from the trading long positions.
The counter is trading into a rising channel pattern after reversal from the support zone and forming the higher lows series. The strong bullish momentum on weekly scale suggest that the counter is likely to maintain bullish continuation chart formation in the coming horizon.
For traders, Rs 580 would act as an important support zone while Rs 650 could be the key resistance area for the short-term traders. However, below Rs 580 level the uptrend would be vulnerable.
On the daily and weekly scale, the counter is into a rising channel chart formation with higher high and higher low series pattern. The technical indicators like RSI (relative strength index) and MACD (moving average convergence divergence) also indicate further up trend from current levels which could boost the bullish momentum in near term.
As long as the stock is trading above Rs 990, the bullish formation is likely to continue. Above which, the counter could move up to Rs 1,100-1,140.
On the flip side, fresh sell-off is possible only after dismissal of Rs 990. Below the same, the stock could retest the level of Rs 950.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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