Banking and financials and select auto stocks pulled the market marginally down, but overall it was a consolidation day for the benchmark indices on March 24 as traders closely monitor developments related to Ukraine-Russia war.
The BSE Sensex fell 89 points to 57,596, and the Nifty50 declined 23 points to 17,223, while the broader markets showed outperformance over benchmarks, as the Nifty Midcap and Smallcap indices gained 0.6 percent and 0.4 percent, respectively.
Stocks that were in action include Zee Entertainment Enterprises which was the biggest gainer in the derivative segment, surging nearly 17 percent to Rs 299; Dr Reddy's Laboratories which was the top gainer in the Nifty50, climbing nearly 5 percent to Rs 4,328; and Sequent Scientific which rallied 13 percent to Rs 139.5.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
From last couple of months, the stock is consistently facing selling pressure at higher levels. In this quarter so far, it corrected over 10 percent. The important thing is, on daily and intraday charts the stock consistently forming lower top series formation which is broadly negative for the medium term.
However, due to temporary oversold situation, on Thursday, it reversed sharply, rallied 13 percent. We are of the view that, the medium term structure is still in to the downside, but pullback rally is likely continue if it succeeds to trade above Rs 134 level.
On the higher side, Rs 150 and Rs 162 would be the immediate hurdle areas for the bulls. On the other side, below Rs 134 the short term uptrend would be vulnerable.
On Thursday, the stock opened with a gap up and gained over 15 percent. In this month so far, it rallied over 34 percent. The important thing is, after a long time it succeeded to close above 200 & 50 day SMA (simple moving average).
A strong price volume breakout formation supports further uptrend from current levels. For the next few trading session, Rs 280 would be the trend decider level for the bulls, sustain above the same we could expect continuation of uptrend up to Rs 315-330.
On the flip side, dismissal of Rs 280 could possibly trigger quick short term correction till Rs 270-262.
From last couple of months, the witnessed medium term price correction. From its previous top, it corrected over 20 percent. After a lengthy correction eventually the stock took the support near Rs 3,700 and bounce back sharply.
In addition, after a long it succeeds to trade above 50 day SMA. For the traders now 50 day SMA or Rs 4,200 would act as a key support level. Above which the uptrend wave will continue till Rs 4,400-4,500.
On the flip side, below Rs 4,200-4,150 strong possibility of short term correction is not ruled out.
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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