Bears tightened their grip over the market on November 22. Stocks from banking & financials, FMCG, Pharma and IT space saw deep correction. Fall in index heavyweight Reliance Industries, and consistent FII selling dragged the market lower by 2 percent.
The Nifty50 plunged nearly 350 points to 17,416, and the BSE Sensex was down 1,170.12 points at 58,466, while the broader markets also saw major selling pressure with the Nifty Midcap 100 and Smallcap 100 indices falling around 3 percent each.
Stocks that were in focus included PVR, which fell 5.35 percent to Rs 1,604.30; Dixon Technologies (down 6 percent at Rs 5,067.55); Info Edge India (down 6.4 percent at Rs 6,071.90). Info Edge and Dixon Technologies were among the top five losers in the futures & options segment.
Here's what Vikas Jain of Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:
The stock has declined by 13 percent from its recent 52-week high of Rs 1,839 levels witnessing profit booking over the past 3 weeks.
It has strong support near Rs 1,500 levels being the 100-day average and would complete 38.2 percent retracement of the previous up move (Rs 988-Rs 1,839).
We believe it gives a good opportunity to accumulate in declines for a higher target of Rs 2,100 as the longer term trend remains bullish on monthly charts. We advised holding the stock.
The stock has made an Inverted Head and Shoulder on weekly charts indicating a medium term top is being made for the stock.
We believe one should book profit at current levels as the breach below Rs 4,700 levels would break the long term trend.
RSI (relative strength index) has also reversed from the top confirming the weak trend over the next few months. We advised profit booking in the stock.
A lower top and Bearish Engulfing candle on weekly charts after a strong outperformance over the last one year indicates loosing bullish momentum.
Multiple double week top at Rs 6,550-6600 levels confirms a reversal for a retracement to test the 50-week average.
Short term traders should book profits at current levels and wait for decline to enter.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their 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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