The market extended losses for the second session, with the Sensex losing 456.09 points to close at 61,259.96 and the Nifty ending 152.20 points lower at 18,266.60 on October 20.
All sectors, barring PSU Bank, closed in red with auto, FMCG, metal and pharma losing up to 2 percent. The broader markets were hit hard, with the Nifty midcap and smallcap indices falling over 2 percent each.
Some stocks, however, outperformed the market including telecom operator Bharti Airtel rallied 4.02 percent to close at Rs 708.45 and was the biggest Nifty50 gainer.
The country's largest lender State Bank of India was the second biggest Nifty gainer, crossing the Rs 500-mark for the first time before closing with 2.4 percent gains at Rs 499.90. Metropolis Healthcare was also in action despite correction in broader markets, rising 5.73 percent to close at Rs 2,907.55.
Paras Defence and Space Technologies, which surged 66 percent in four straight sessions, was locked in 10 percent upper circuit at Rs 990.40 on October 20.
Here's what Gaurav Sharma of Globe Capital Markets says investors should do with these stocks when the market resumes trading today:
The stock has recently posted fresh breakout from Rs 680-700 levels in which it was trading from past two weeks. A recent news flash reveals that the company has managed to add good number of customers in the month of September. This is quite positive news.
This up move is back by above average volume, indicating buyers' interest at current levels. Hence, we advocate buying it at current market price (Rs 708.45) for targets close to Rs 750-770 in the immediate near term. Traders must maintain stop loss below Rs 670.
PSU Banks have performed quite well in the recent past and so did SBI. It went past psychological hurdle of Rs 500 in day trade on October 20, which in itself is quite a positive development.
Going by its short as well as medium term charts, we see it heading northwards in coming sessions as well, Rs 525-540 are the immediate upside targets that we are eyeing at. Short term traders are advised to keep stop loss below Rs 475.
This stock is consolidating in range Rs 2,600 to Rs 3,200 from past two months. As of now, there are no concrete signs as to which side the stock is headed in the immediate near term, but an either side break from the above mentioned range will lead to Rs 300 to Rs 400 points move in that direction.
Paras Defence and Space Technologies
This stock got listed on the October 1 at Rs 469 and has been hitting higher highs since then and has more than doubled in less than two-month time.
As its data is too less to assess it on basis on charts; hence, providing a short term outlook is not possible. But, going by basis of the market, such steep rise is generally not sustainable. Hence, traders should keep trailing stoploss with every rise.
As of now, we recommend to maintain stop loss below Rs 800.
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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