The market fell sharply on the first day of the week, April 18, due to a correction in IT stocks on unfavourable earnings and banking & financial services. Rising tensions in Ukraine, higher oil prices and US dollar index above the 100 mark also weighed on the market.
The BSE Sensex tanked more than 1,100 points to 57,167 while the Nifty50 fell more than 300 points to 17,174 but defended the crucial psychological 17,000 mark. The broader markets followed the same trend as the Nifty Midcap 100 and Smallcap 100 indices slipped over one percent each.
Stocks that were in action include NTPC which was the biggest gainer on the Nifty50 index, rising six percent to Rs 163.2, while JK Paper, Capri Global Capital, and Gujarat Ambuja Exports ended at record closing highs.
JK Paper climbed six percent to Rs 365, Capri Global Capital rose 17.3 percent to Rs 737, and Gujarat Ambuja Exports rallied 5.4 percent to Rs 334.
Here's what Malay Thakkar of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
JK Paper is showing relative outperformance and touched a new life high in Monday's session. The stock has not corrected irrespective of the weakness in the market and has been moving with higher highs and lows along with volume expansion in upmove.
The RSI (relative strength index) is sustaining above the 70 mark and indicating strong bullish momentum.
Traders and investors can continue holding the stock and expect upside towards Rs 415 followed by Rs 440 levels. The Rs 330 level will act as an important support for the stock on the downside.
NTPC recently broke out of a symmetrical triangle pattern and has shown strong upside backed with good volumes since then. Currently the stock traded at a decade high as it broke above the 2011 highs.
The momentum looks strong as the RSI on all timeframes is sustaining above the 60 mark.
Traders and investors can expect upside in the counter towards Rs 178 and Rs 190. Downside support for the counter is now at Rs 152 mark.
Capri Global Capital is moving in a strong uptrend with higher highs and lows formation since April 2020. The upmove has been backed with good volume build-up indicating bullish sentiment in the undertone.
The stock has broken above the upper Bollinger bands, and the bands are expanding indicating possibility of a trending move going ahead.
Traders and investors should continue holding the stock for upside towards Rs 820 followed by Rs 915 levels. Downside support zone is now at Rs 640-650 zone.
Gujarat Ambuja Exports has been moving in a strong uptrend since March 2020 with higher highs and lows. The stock is showing good volume participation in the recent upmove.
The RSI indicator on all timeframes -- daily, weekly and monthly -- is above the 70 mark which suggests strong momentum.
Going ahead we expect the stock to move higher towards Rs 370 followed by Rs 405 levels. Downside support is placed in Rs 300-305 zone.
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