The benchmark indices further extended losses on September 30, falling for the third consecutive session. Nifty50 closed a tad above 17,600 and the BSE Sensex managed to hold on to the 59,100-level.
Banking & financials, IT, metals and select auto stocks pulled the market lower. But the outperformance by broader markets continued as the Nifty Midcap 100 index gained 0.36 percent and Smallcap 100 index rose 0.75 percent.
Stocks that were in focus included IRB Infrastructure Developers that rallied 7.41 percent to close at Rs 203.60, Canara Bank (closed 2.88 percent higher at Rs 173), and Nazara Technologies (which touched a record high of Rs 2,414.40 before closing 0.07 percent higher at Rs 2,292.10).
Here's what Shrikant Chouhan of Kotak Securities, recommends investors should do with these stocks when the market resumes trading today.
The stock on September 30 opened with gap up and quickly clear the psychological Rs 200 resistance mark with a strong volume activity. Despite tepid market conditions, IRB Infrastructure Developers maintained its strong momentum throughout the day.
On the short term time frame, the stock has formed strong price volume breakout pattern. The texture of the pattern suggests breakout action will continue in the near term if stock succeeds to trade above Rs 191 level.
For the swing traders, Rs 191 would be the sacrosanct level. If the stock trades above the same, we can expect uptrend continuation wave up to Rs 220-235.
On daily and weekly charts, the stock has formed a strong higher bottom series formation. The stock is consistently making higher bottom series pattern which is broadly positive for the Canara Bank.
The important thing is that, it is trading well above medium term and short term averages along with modest volume activity which support short term uptrend.
For the positional traders, Rs 168 and Rs 165 would act as an important support level. And, if stock manages to trade above the same, we can expect continuation of uptrend wave up to Rs 200.
After a strong uptrend rally from Rs 1,800 to Rs 2,200, the stock has maintained uptrend momentum with higher high and higher low formation which is broadly positive for the Nazara Technologies.
The medium structure of the charts is promising but on daily and intraday charts, the stock consistently taking resistance between Rs 2,350 to Rs 2,400 price ranges.
We are of the view that, for the trend following traders Rs 2,200 would be the key support level.
As long as it's trading above the same, uptrend wave is likely to continue up to Rs 2,500-2,575. On the flip side, dismissal of Rs 2,200 could possibly open one more leg of correction till Rs 2,100-2,050.
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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