Oil prices rose to a 10-year high following escalated war between Russia and Ukraine caused selling pressure in the market on March 3. The BSE Sensex fell 366 points to 55,103 and the Nifty50 declined 108 points to 16,498, weighed by banking & financials, auto, FMCG and select pharma stocks.
The broader markets had a mixed trend with the Nifty Midcap 100 index closing 0.4 percent lower and Smallcap 100 index ending 0.35 percent higher.
Hindustan Petroleum Corporation climbed 4.6 percent to Rs 279 apiece, becoming the third largest gainer in the futures & options segment. Tata Chemicals jumped 4 percent to Rs 890 per share, while Shipping Corporation of India extended the rally to second consecutive session, rising 16.8 percent to Rs 124.15 per share.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
Hindustan Petroleum Corporation
After a short-term price correction, the stock has formed a double bottom chart pattern and reversed sharply from Rs 265 levels with incremental volumes.
The structure of the counter suggests that the downside seems to be limited at Rs 265, hence making it a good candidate with regards to the risk and reward scenario.
The counter is expected to move towards Rs 300 and Rs 330 levels which could be the resistance points for the coming horizon.
The stock was in a correction mode from the highs of around Rs 1,050. The counter bounced back after hitting the support level of Rs 780, so this level will act as a short-term base for the counter.
Presently, it has closed well above its 200-day simple moving average (SMA) level of Rs 860. Given the pace of momentum, the stock has a strong possibility of a further bullish trend towards Rs 1,030 levels.
On a monthly scale, after a remarkable rally from Rs 50 to Rs 150, the counter started its downward movement and witnessed bearish continuation till its important demand area of around Rs 100 levels.
However, a sharp pullback was seen in the counter with huge volumes near its trend line support which suggests upside movement to continue in the near term. The counter is likely to move higher to Rs 160 levels.
On the other hand, Rs 115 will be the support for the counter.
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