The market snapped two-day winning streak and fell more than one percent on the first trading session of March, as the crisis between Ukraine and Russia continued to dent the investor sentiment. The Nifty50 plunged 188 points to 16,606, and the BSE Sensex declined 778 points to close at 55,469 after cutting some losses in the fag end of the session on March 2.
Banking & financials, auto, pharma, select IT and FMCG stocks weighed down the market, but metal stocks bucked the trend with Nifty Metal index closing 4 percent higher amid rising commodity prices.
Stocks that were in action include MCX India and HDFC Life, which were the second and third largest gainer in the futures & options segment. MCX India rose 7.4 percent to Rs 1,366, while HDFC Life spiked 7.2 percent to Rs 560.8.
Aegis Logistics snapped seven-day losing streak, rising nearly 14 percent to Rs 191.9 apiece on the BSE. The stock had fallen 24.5 percent in last seven days.
Crompton Greaves Consumer Electrical, falling 4.91 percent to Rs 407.45 per share, was the top loser in the NSE derivative segment. The scrip had gained nearly 13 percent in previous four sessions.
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:
MCX has been making lower highs and lower lows since last 5 months or so due to continuous selling pressure at higher levels. At current stage, the counter has formed bullish butterfly pattern with potential reversal zone of Rs 1,260-1,270 levels. In last trading session, MCX has bounced back from PRZ (potential reversal zone) with good volume picking up which is an early sign of reversal.
On indicator front 14 period daily RSI (relative strength index) is displaying impulsive behaviour which is looking very lucrative at current levels.
So from investor’s perspective one can buy in small tranche at current levels and another tranche around Rs 1,265 levels with target of Rs 1,700 with plausible support seen at Rs 1,200
Crompton Greaves Consumer Electrical
Crompton Greaves Consumer has corrected 31 percent approximately from its previous high of Rs 513 since last 5 months and is currently placed well below its 200 DEMA (day exponential moving average) on daily chart.
In previous trading session, the said counter has reversed from reversal zone of Rs 375-380 levels along with MACD positive crossover followed by good volume buying.
Therefore, from investor viewpoint one should add at current levels in small quantity and wait for some dip till Rs 380. Upside is expected till Rs 510 and solid support is seen at Rs 350.
HDFC Life appears to be making lower highs and lower lows since August 2021. The best thing about this setup is that on weekly chart, the counter has respected 0.618 golden ratio of previous rally which got terminated on August 2021.
Last but not the least HDFC life has formed piercing pattern on weekly chart followed by massive volume, also it got complimented by impulsive behaviour of 14 period weekly RSI.
Though, the best buying opportunity is available at two different levels i.e. Rs 560 and Rs 540. Expected upper side is Rs 666 with support of Rs 510.
The counter has seen massive beating in recent past as profit booking was seen at high levels. At current juncture, Aegis has formed bullish Wolfe wave with reversal zone of Rs 180 levels. In recent past the counter has witnessed huge buying with volume picking up near its reversal zone.
One can buy this counter immediately at CMP in small quantity and buy another tranche at Rs 180 for long-term. Upside is seen near Rs 250-260 with solid support of Rs 160.
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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