Global weakness amid mounting recession fears dampened the market sentiment for the fourth straight session as the BSE Sensex plunged more than 950 points to 57,145, and the Nifty50 fell over 300 points to 17,016 on September 26.
All sectors, except IT, were under selling pressure with auto, metals, realty and oil and gas being the biggest losers.
The heavy sell-off also continued in the broader market as the Nifty Midcap 100 and Smallcap 100 indices tanked more than 3 percent each amid weak breadth. More than 10 shares declined for every declining share on the NSE.
Volatility was also high on Monday, with the India VIX rising 6.3 percent to 21.89 levels, keeping the trend favourable for bears.
Stocks that were in action and bucked the trend included Asian Paints which gained more than 1 percent to Rs 3,438 and formed a bullish candle which resembles a bullish engulfing kind of pattern on the daily charts. The stock has been holding the mid of second candle among three white soldiers formation seen in July 27-29.
Avenue Supermarts shares rose 0.2 percent to Rs 4,375.3 and formed small bodied bullish candle on the daily charts, while Westlife Development rose 2.76 percent to Rs 694.4 and saw bullish candlestick pattern on the daily charts with higher volumes.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
Prices of Asian Paints have broken the swing high Rs 3,278 level (April 29, 2022) which negates Lower low Lower High formation which indicates reversal or pause in the prior downtrend.
In the latest trading session, prices have given a breakout from the Descending Triangle pattern, indicating beginning of the trend on the upside.
Prices have sustained above 50 days EMA (exponential moving average - Rs 3,308) confirming that the trend is on the upside.
RSI (relative strength index) on the daily as well as on the weekly timeframe are above 50 mark which reflects the strong momentum in the prices.
We advise traders and investors to buy this stock for the target of Rs 3,800 where stop-loss must be Rs 3,300 level on the closing basis.
Prices of Avenue Supermarts are forming Higher high, Higher low formation which tells that the stock has bullish undertone in the prices.
Prices post the breakout of Double bottom pattern in July 2022 indicated beginning the trend on the upside.
The stock is currently trading above its key moving average the 200 days EMA (Rs 4,253.93) and 50 days EMA (Rs 4,273.64).
RSI on the weekly timeframe is rising above 50 mark which reflects that the stock still has the momentum left to go higher.
We advise traders and investors to Hold this stock with the stop-loss of Rs 4,155 on the closing basis for the target of Rs 4,800.
The overall trend in the Westlife is on the upside while trading around the life time high levels which tells that the stock already is in a strong momentum.
The Stock after giving a breakout of Rounding Bottom pattern in the August 2022, indicated beginning of the trend on the upside.
Prices are rising with the increase in the volumes which tells that the demand is pushing the prices higher.
Prices are currently hovering continuously around the Upper Bollinger Band indicating that the volatility in the prices are rising for the upside move.
RSI on the daily as well as on the weekly timeframe are above 50 mark that reflects the strong momentum in the prices.
We recommend Trader and investors to hold this stock with the stop-loss of Rs 625 for the target of Rs 800.
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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