We have seen bears holding a tight grip over the market, which resulted into the benchmark indices closing below 200-DMA (daily moving average - 17,384) as well as the low of budget day (17,353) on February 28. Commodity stocks like metal, and oil and gas, along with technology, pharma and select FMCG stocks saw selling pressure.
The BSE Sensex corrected more than 300 points to 58,962, while the Nifty50 declined 89 points to 17,304, and formed a bearish candlestick pattern on the daily charts, with making lower highs lower lows for eighth consecutive session.
However, we have seen the broader markets outshining the benchmarks despite negative breadth. The Nifty Midcap 100 index was up seven-tenth of a percent and Smallcap 100 index rose four-tenth of a percent.
Stocks that were in action and performed better than broader markets included JSW Energy which surged nearly 13 percent to Rs 235, the highest closing level since February 9, and formed large bullish candle on the daily charts, with strong volumes after taking support at Rs 205 in previous session.
JBM Auto shares rallied 4 percent to Rs 574 on the NSE and saw a formation of long bullish candlestick pattern on the daily charts with above average volumes, after consolidation in previous few sesions. The stock traded above all key moving averages, which is a positive sign.
Zensar Technologies climbed 4 percent to Rs 290 and formed bullish candle on the daily charts with above average volumes. Also there was tweezer bottom kind of pattern formation, which is generally a bullish reversal pattern. The stock traded well above all key moving averages.
Here's what Vaishali Parekh of Prabhudas Lilladher recommends investors should do with these stocks when the market resumes trading today:
The stock after a decent erosion witnessed from Rs 368 levels has shown signs of bottoming out near Rs 204 zone and indicated a bullish positive candle on the daily chart with active volume participation to improve the bias and trend.
The RSI (relative strength index) has indicated a steep rise with trend reversal from the oversold zone and has immense upside potential to carry on the momentum still further.
We suggest to buy and accumulate the stock for an upside target of Rs 255-260 levels with Rs 217 as the stop-loss to be maintained.
The stock has indicated a series of higher bottom formation pattern on the daily chart to imply a rising trend and recently giving a breakout above Rs 568 levels has improved the bias and trend to anticipate for further rise.
The near term support is maintained near Rs 550 zone and we can expect a pullback for next initial target of Rs 625-630 levels. The RSI indicator is also well placed indicating strength and has scope for further rise in the coming days.
We suggest to buy this stock for an upside target of Rs 625-630 keeping the stop-loss of Rs 550.
The stock has picked up well after bottoming out near Rs 205 zone and has moved past the signficant 200-DMA level of Rs 240 to improve the bias and trend.
Currently after resisting near Rs 308 zone the stock has witnessed some consolidation and after a short dip has again shown improvement with a decent pullback to anticipate for further rise in the coming days.
A decisive move past Rs 308 zone shall trigger for further upward movement till Rs 350 zone in the near term time frame. The stop-loss can be kept near Rs 275 levels.
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