The market snapped its three-day winning streak to close more than 1 percent on February 3. Selling pressure across sectors, barring auto, and weak global cues weighed on the sentiment.
The Nifty closed lost more than 200 points to close below the 17,600 mark, while the Sensex tanked 770 points to end below 58,800.
The broader market also saw a drop but the correction was lower compared to the benchmark indices. The Nifty Midcap 100 index fell 0.96 percent and smallcap 100 index declined 0.34 percent.
Stocks that were in focus include Himadri Speciality Chemical, which hit a fresh 52-weeek of Rs 67.65 before closing 14.83 percent higher at Rs 66.20 .
Blue Star surged 9.66 percent to Rs 1,000.05, while TVS Motor Company, which was the biggest gainer in the futures & options segment, gained 4.97 percent to Rs 657.25.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
After a medium-term price correction, the stock took support near Rs 600 and reversed quickly. Post sharp reversal formation, it is comfortably trading above 50 and 200-day simple moving average (SMA), which is broadly positive.
On daily and weekly charts, the stock formed a promising double bottom, which supports further uptrend from current levels.
We are of the view that as long as it trades above Rs 625, the uptrend formation will persist. Above the same, it can rally up to Rs 680-710.
The stock has rallied over 12 percent on February 3. After a strong opening, the stock quickly surpassed 61 resistance mark and post-range breakout, it intensified the positive momentum throughout the day.
On the short-term timeframe, the stock has formed a strong price volume breakout pattern. The texture of the pattern suggests breakout action will continue in the near term if the stock succeeds to trade above 61 level.
For the breakout traders, 61 would be the key level to watch out, above it, the stock could move up to Rs 70-75.
After a sharp decline, the stock took support near 200-day SMA. Post the reversal formation, the stock registered a sharp pullback rally. In the last two days, it rallied over 18 percent. However, on the daily and the weekly charts, the stock is still holding lower top formation, which is broadly negative for the Blue Star.
We are of the view that the stock is witnessing non-directional activity, perhaps traders are waiting for either side breakout confirmation.
For the bulls, now Rs 1,050 would be the important breakout level to watch. And if, the stock manages to close above the same, we can expect quick uptrend rally towards Rs 1,100-1,150. On the flip side, trading below Rs 950 may increase further weakness up to Rs 925-890.
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