The market continued to fall for the third straight session, as turmoil in the US banking space weighed down global peers. Equity benchmarks lost 1.5 percent on March 13, taking the total three-day loss to over 3 percent.
The BSE Sensex tanked nearly 900 points to 58,238, while the Nifty50 plunged over 250 points to 17,154, the lowest closing level in last five months, forming long bearish candle on the daily scale, as the sell-off was seen across sectors with banks taking the lead in correction.
The Nifty Midcap 100 and Smallcap 100 indices also followed suit, shedding around 2 percent each on weak breadth. More than six shares declined for every rising share on the NSE.
Stocks that bucked the trend included Sudarshan Chemical Industries which ended with just 0.6 percent gains at Rs 374 after erasing more than 8 percent from its day's high. The stock has formed small bodied bullish candlestick pattern with very long upper shadow on the daily charts, indicating profit taking in the counter at higher levels, but the trading volume was robust. Overall, the stock has been in a consolidation mode for more than a month now.
Elgi Equipments shares gained 2 percent at Rs 478 and formed bullish candle with long upper wick on the daily charts, indicating profit booking at higher levels. The stock has seen higher high higher low formation on the daily charts, with above average volumes.
Aptus Value Housing Finance India also saw strong trading volumes for yet another session, though there was some profit taking at higher levels. As a result, the stock has seen bullish candle with long upper shadow formation on the daily timeframe, rising nearly 1 percent to Rs 253.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Sudarshan Chemical is currently nearing its 52-week low which illustrates the negative sentiment behind the stock prices. The stock recently has given a breakdown of Rs 400 level which had been acting as a strong support for the prices.
The stock is below its key moving averages of 50 & 200-day EMA (exponential moving average) which confirms the presence of downtrend.
The RSI (relative strength index) on the daily timeframe has maintained the range of 30-55 which reflects the lack of positive momentum in the prices. We recommend traders and investors to exit the stock.
The stock of Elgi Equipments, after breaching the low of Rs 388 in the January 2023 created a formation of Lower Low, Lower High, this illustrates a reversal to the downside.
In the latest trading session, the stock has shown a turnaround from the resistance of Rs 485 level which shows profit booking on the higher side as a long higher wick can be spotted.
The recent up move from January 30, 2023 was accompanied by lower Volumes this shows long unwinding. The downward slopping trend line of RSI reflects the loss of momentum with the up move.
We recommend traders and investors to exit this stock.
Aptus Value Housing Finance India
Aptus Value is in a clear lower low, lower high formation which illustrates bearish undertone of the prices. The stock has shown a turnaround from the neckline of Descending Triangle pattern which indicates continuation of downtrend.
The stock has breached below the 20-day SMA which acted as a strong variable resistance for the prices.
RSI on the daily timeframe has shown a bearish reversal which reflects the lack of positive momentum in the prices. Traders and investors are advised to exit this stock.
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