The market fell more than one percent for yet another session as bears retained their stronghold over Dalal Street for a second consecutive session on April 25, dragged by metals, technology, FMCG, pharma stocks and index heavyweight Reliance Industries.
The BSE Sensex declined more than 600 points to 56,580, and the Nifty50 closed below psychological 17,000 mark, falling over 200 points to 16,954, while the broader markets reeled under severe selling pressure, with the Nifty Midcap 100 and Smallcap 100 indices sliding 1.92 and 2.4 percent respectively.
Stocks that were in action include Aditya Birla Capital which was the biggest gainer in the futures & options segment, rising 3 percent to Rs 116, and Adani Power which which was locked in 5 percent upper circuit at Rs 272.
Among others, Elgi Equipments gained 1.91 percent at Rs 344, and Ambuja Cements rose half a percent to Rs 376.35 though off day's high.
Here's what Malay Thakkar of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Aditya Birla Capital is showing strength as the stock broke above the previous week high in Monday's session. The stock is moving higher after taking support at the cluster of 20 day SMA (simple moving average - Rs 112) and 200 day SMA (Rs 113).
On the indicator front, RSI on daily is sustaining above the 60 mark and indicates bullish momentum in the counter.
We expect the stock to move higher towards Rs 120 and breaking above that can increase the momentum and take the stock towards Rs 130 level. Downside support for the stock is placed at Rs 110 level.
On long term charts, Elgi Equipments is moving with higher highs and higher lows formation.
In the recent correction the stock took support at the 61.8 percent Fibonacci retracement level and bounced to end above the 20 week SMA (Rs 330) in the past week.
The RSI indicator on weekly has witnessed a range shift and is sustaining above the 40 mark since May 2020.
Traders and investors can continue holding the stock for upside towards Rs 370 and Rs 395 levels. Downside support for the stock is now at Rs 315 level.
Adani Power is showing outperformance and moving with higher highs and higher lows formation. On the daily charts the stock is moving higher after breaking out of the pennant formation indicating continuation of the bullish trend.
The RSI indicator on all timeframes is above the 80 mark which suggests strong momentum in the undertone.
Traders and investors should continue holding the stock and expect upmove towards Rs 297 followed by Rs 315 levels. Rs 250 will act as a strong support for the counter.
In recent correction, Ambuja Cements took support and halted the downmove at its 50 percent Fibonacci retracement level (Rs 136-442 rally).
After taking support the stock has seen good price volume action and managed to sustain above 20 week SMA (Rs 349) maintaining higher highs and higher lows formation for the past five weeks.
The RSI indicator on weekly charts has also started moving higher after forming a bullish hinge near the 40 mark.
We advise traders and investors to continue holding the stock and expect upside towards Rs 410 followed by Rs 435 levels. The downside support for the stock is placed at Rs 350 level.
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