After a healthy run in the previous session, the market turned volatile on February 16 to close with moderate losses, weighed by weak European cues amid Ukraine-Russia concerns. Select banks, auto, IT and metal stocks dragged the market.
The BSE Sensex fell about 150 points to close near 58,000-mark, and the Nifty50 declined 30 points to close at 17,322. A mixed trend was witnessed in the broader space as the Nifty Midcap 100 index declined 0.3 percent and Smallcap 100 index advanced 0.73 percent.
M&M Financial Services, rising 5.5 percent to Rs 162.10, was the biggest gainer in the futures & options (F&O) segment, while Strides Pharma, adding 3.11 percent to Rs 374.85, was the fifth largest gainer.
Tanla Platforms gained momentum and remained in action, rising 6 percent to Rs 1,692, while Happiest Minds Technologies was locked in 5 percent upper circuit at Rs 1,068.90.
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:
M&M Financial Services has corrected approximately 27 percent from its previous high of Rs 206.35 since last 5 months and is currently placed below its 200-day EMA (exponential moving average) on daily chart. On January 25, 2022 it has made bullish piercing pattern, in last two trading sessions it has shown good up move with huge volume surge.
On four hours chart it is showing bullish divergence along with MACD (moving average convergence divergence) positive crossover near zero line indicating positive sentiment in the counter. So from investor perspective one should add at current levels with upside potential of Rs 200 and credible support is seen at Rs 140 levels.
Tanla Platforms has been under selling pressure for quite some time. At current juncture the stock has seen Bullish Marubozu Pattern at the critical level of 50 percent retracement of its previous rally with 14 period RSI (relative strength index) on daily chart displaying impulsive behaviour.
In last trading session the stock has started gaining momentum with volume picking up. In that scenario, a higher target of Rs 2,100 can be expected. Though, the best buying opportunity is available only either on a close above Rs 1,700 or on the dip around Rs 1,650 levels with credible support at Rs 1,450.
In last 10 months, STAR has corrected almost 61 percent from its top of Rs 947 and placed well below of its 200-daily moving average. Previously stock took support around Rs 320-340 levels and we saw rally towards Rs 950 approximately.
On February 15, 2022 STAR has taken support at potential reversal zone of bullish crab pattern i.e. Rs 344 along bullish divergence on 14 period daily RSI which is indicating that counter is bottoming out.
Last but not the least, on 4 hours chart RSI has developed bat action magnet movement pattern 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 355 levels with target of Rs 490-500 with plausible support seen at Rs 335-340.
Happiest Minds Technologies appears to be making lower highs and lower lows since September 2021. At current scenario stock has formed bullish AB=CD Pattern with potential reversal zone of Rs 1,000-1,020 which is also falling near 0.618 golden ratio of previous rally which got terminated on July 2021.
Looks like counter is ready for upmove. Therefore, from investor perspective one should add at current levels in small quantity and wait for some dip till Rs 1,030. Upside is expected till Rs 1,250 and solid support is seen at Rs 925.
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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