The market rebounded sharply after a day of steep correction, but wiped out gains in the last hour of trade to close on a flat note on May 5 despite positive trend in global counterparts.
The BSE Sensex lost 864 points from day's high to end with just 33 points gains at 55,702, while the Nifty50 fell from around 16,950 levels and ended the session at 16,683, up 5 points supported by technology and select banking & financial stocks.
The market breadth was largely in favour of bears as about 1,104 shares declined against 826 advancing shares on the NSE. Hence, the Nifty Smallcap 100 index fell 0.75 percent, while Nifty Midcap 100 index gained 0.1 percent.
Stocks that were in action include ABB India, Tech Mahindra and Dixon Technologies which were among the top five gainers in the futures & options segment, and also outperformed broader markets on Thursday.
ABB rallied 10 percent to close at Rs 2,221, Tech Mahindra jumped 4.2 percent to Rs 1,263, and Dixon Technologies rose 3.7 percent to Rs 3,950.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
The stock has rallied over 10 percent on May 5, 2022. On Thursday, it opened with gap-up and quickly cleared 20 day simple moving average (SMA) level with strong volume activity.
Despite tepid market conditions, ABB maintained its strong momentum throughout the day. On the short term time frame, the stock has formed strong price volume breakout pattern.
The texture of the pattern suggests breakout action will continue in the near term if stock succeeds to trade above Rs 2,150 or 20 days SMA level.
For the swing traders, Rs 2,150 would be the sacrosanct level, trading above the same we can expect uptrend continuation wave up to Rs 2,350-2,450.
After a long correction, the stock took support near Rs 1,200 and reversed. In this quarter, so far, Tech Mahindra corrected over 15 percent.
Technically, the medium term chart formation is still in to the weak side but due to temporary oversold situation sharp pullback rally from the current level is not ruled out.
In the near future, Rs 1,200 and Rs 1,220 would act as a key support zone. Above which it could rally up to Rs 1,300-1,325. On the flip side, below Rs 1,200 uptrend would be vulnerable.
In this weak so far, the stock corrected over 10 percent. The stock is consistently facing selling pressure at higher level.
In addition, on daily and weekly charts, it has formed lower top formation and post breakdown it is comfortably trading below 50 and 20 days SMA which is largely negative.
As long as it is trading below Rs 4,100, the correction wave is likely to continue. Below the same, it could touch the level of Rs 3,800. Further downside also can continue which can drag the stock up to Rs 3,700-3,650.
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