The market made an attempt to extend previous day's gains but the selling pressure in afternoon wiped out all those morning gains and finally the benchmark indices fell around half a percent on March 23. Banks, auto, select FMCG and IT stocks caused selling pressure in the market.
The Nifty50 lost nearly 200 points from day's high and closed at 17,246, down 70 points, while the BSE Sensex fell more than 300 points to 57,685. The broader markets had a mixed trend with the Nifty Midcap 100 index rising half a percent, and Smallcap 100 index falling 0.2 percent.
Stocks that were in action include L&T Finance Holdings and City Union Bank which were the top two gainers in the futures & options segment, rising 16.2 percent to Rs 87.25 and climbing 4.7 percent to Rs 125.60 respectively.
Among others, Ashapura Minechem was locked in 20 percent upper circuit at Rs 125, and Royal Orchid Hotels was frozen at 10 percent upper circuit at Rs 125.50.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Since October 2017, L&T Finance has corrected almost 65-70 percent approximately from its top of Rs 198.90. Previously the stock took support around Rs 60 levels and we saw rally towards Rs 114 approximately.
On monthly chart, L&T Finance has taken support at potential reversal zone of special bullish Gartley pattern i.e. Rs 65 along with MACD (moving average convergence divergence) trying to make positive crossover on monthly which is indicating that counter is bottoming out.
So from investor's perspective, one can buy at current levels and buy another tranche at Rs 70 with target of Rs 120 with plausible support seen at Rs 60.
Ashapurmin has consolidated since last couple of month or so. Recently said counter has given clean daily breakout on triangle pattern with MACD giving positive crossover near zero line which is indicating that the stock is ready for up move.
On daily chart there is a bullish Marubozu pattern with volume picking up. One can buy in small quantity at current levels and another around Rs 115 levels with target of Rs 160 with good support seen at Rs 100.
Royal Orchid Hotels has been making higher highs and higher lows since long time which is positive sign for the counter.
At current juncture there is a clean breakout from triangle pattern on weekly chart complemented by MACD bullish crossover and RSI (relative strength index) showing upside momentum which is early sign of strength in the said counter.
From investor's point of view one should buy on dips with upside potential Rs 165 with credible support seen at Rs 100.
What a classic setup we are having in City Union Bank, precise Bullish Crab pattern on 4-hour chart with N wave formation near potential reversal zone of Rs 115-120.
At current scenario, MACD has made flip-flop structure near zero which is also complemented by RSI crossing above 50 levels denoting positive momentum in counter.
From investor's perspective this is lucrative levels from where one can add in small quantity and add another tranche at Rs 118 levels. Upside is seen till Rs 150 levels with Rs 110 as good support.
Disclaimer: The views and investment tips expressed by investment 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.
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