Indian market snapped its 3-day winning streak on Monday following rise in COVID cases and announcement of new lockdown measures imposed by various states in India.
The S&P BSE Sensex closed below 48000 while Nifty50 close with losses of over 250 points on April 19.
Some of the stocks in focus were SAIL, which fell more than 2 percent, IDFC First Bank that dropped more than 5 percent, and Tata Motors which closed with a loss of nearly 3 percent in the previous trading session.
Here's what Ruchit Jain, Senior Analyst- Technical and Derivatives, Angel Broking Ltd, recommends investors should do with these stocks when the market resumes trading today:
SAIL - Hold
The metals space has given tremendous returns to investors in the last few months. SAIL too has moved higher with good volumes in this phase.
Now, if we look at the short-term charts, then the trend still looks positive. The swing low of Rs. 83 is the immediate support for the stocks. Hence, traders with existing positions can hold with a stop loss placed below the mentioned support.
On the flipside, Rs 95 followed by Rs 99 are seen as immediate resistances.
IDFC First Bank - Hold
Post a sharp up move, the stock has been going through a corrective phase since the last one month and prices are now off the recent swing highs.
However, this recent down move just seems to be a corrective phase, and one should stay invested in the stock with a medium-term perspective.
The supports for the stocks are placed around Rs 47 and Rs 44 and corrections towards the mentioned levels could be used to accumulate the stock.
Tata Motors - Hold
The stock is forming a ‘Higher Top Higher Bottom’ structure on the weekly charts and hence, the trend continues to be positive.
It is going through a corrective phase before resuming its uptrend. The stock has support around Rs 270-275 and any dips towards this support should be used as a buying opportunity.
The immediate resistance for the stock is placed around Rs 325 above which, we could see the price heading towards Rs 355.Disclaimer: The views and investment tips expressed by 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.