Indian market closed in the red on the September series expiry day on Thursday. The S&P BSE Sensex closed below 40,000 while the Nifty50 failed to reclaim 11,700 levels.
Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 172 points to 39,749 while the Nifty50 was down 58 points to close at 11,670.
Experts are of the view that crucial support for the Nifty is placed at 11,580 for the November series, while on the upside, 11,750-11,850 will act as a major hurdle for the index.
L&T fell by about 5 percent, while Tata Motors was down by over 2 percent, and Federal Bank was down by more than 2 percent.
We have collated views of experts on what investors should do when the market resumes trading on 30 October:
Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
L&T: Rs 920 immediate support for positional traders
From the last two days, the stock has been witnessing a sharp price correction. On October 29, the stock opened with a 4 percent gap on the lower side and maintained weak momentum throughout the day.
However, the medium-term chart formation is still on the positive side. Currently, L&T is trading near 20 and 50-Day SMA, and the short-term texture suggests high chances of one more uptrend rally if it sustains above 50-DMA or Rs 920 support level.
For the positional traders, Rs 920 should act as important support. On the flip side, a close below Rs 920 may trigger further weakness up to the Rs 880 level.
Tata Motors: Fresh buying can be considered now & on dips
After a quick uptrend rally from Rs 120 to Rs 145, the stock is now hovering between Rs 125 to Rs 140. On the daily chart, Tata Motors has formed a higher bottom series pattern which is broadly positive.
In addition, the stock is currently trading near 20 and 50-Day SMA along with positive parabolic SAR series which suggest an uptrend continuation wave likely to continue in the near term.
Unless it trades below Rs 125, positional traders retain an optimistic stance and look for a target Rs 150. Fresh buying can be considered now and on dips if any between Rs 135 and Rs 130 levels with a stop loss below Rs 125.
Federal Bank: Rs 55 should be the trend decider level
From the last few days, the stock has been falling rapidly. This week alone, the stock has gone down nearly 9 percent and after a long time, it closed below Rs 52 mark.
On the daily and weekly charts, it has formed a lower top series formation which indicates short-term weakness.
In addition, on the weekly charts, the stock has formed bearish candles and currently trading well below the 50-Day SMA which is broadly negative.
In the near future, Rs 55 should be the trend decider level for the Federal Bank. Trading below the same we can expect further weakness up to Rs 48 and Rs 45.
On the flip side, Rs 55 would be the immediate hurdle for the stock. The strong possibility of a quick fresh uptrend rally above the same is not ruled out.
Disclaimer: The views and investment tips expressed by 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.
