The market lost all its early gains and closed in the red for the third consecutive session despite positive trends in global counterparts on May 25, dragged by IT, auto, metal, pharma and PSU bank stocks.
The BSE Sensex declined more than 300 points to 53,749, while the Nifty50 dropped nearly 100 points to 16,026 and formed a bearish candle on the daily charts, indicating nervousness in the markets.
The Nifty Midcap 100 and Smallcap 100 indices declined sharply by 2.5 percent and 3.5 percent on weak market breadth. More than six shares fell for every rising share on the NSE.
The volatility cooled down a bit but remained above 25, indicating the continuity in volatile swings for the coming days. India VIX, the fear index, fell 1.37 percent to 25.28.
Stocks that were in action included Container Corporation of India, Balkrishna Industries, NTPC, and HDFC Life Insurance Company which were among the top five gainers in the futures and options segment.
Container Corporation of India rallied 6.3 percent to Rs 624, Balkrishna Industries jumped 4.5 percent to Rs 2,161.5, NTPC rose nearly 4 percent to Rs 153, and HDFC Life Insurance Company climbed 3 percent to Rs 569.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
Balkrishna Industries saw some healthy correction during April 2022 month and has bounced above its 200 days exponential moving average (DEMA). Even in the last trading session, on 2-hour chart it gave nice triangle breakout with huge volume which is an early sign of reversal.
On the 2 hours indicator front, 14 period RSI (relative strength index) has bounced back from 50 levels along with MACD (moving average convergence divergence) making positive crossover exactly above zero line which is a sign of great strength.
So from investor perspective, one should add at current levels with upside potential of Rs 2,350 and credible support is seen at Rs 2,050.
In recent past, HDFC Life has taken historical support on top which was made in May 2018. After taking support it has bounced back followed by pair of Hammers on weekly chart.
Looks like counter has established its base near Rs 550 zone and is ready to move up till Rs 650 with good support seen at Rs 525. On indicator front RSI weekly has displayed complex structure below 30 levels which is hinting some sharp up move.
Though the said counter looks lucrative at current levels, one needs to pay attention on weekly chart, since price action is trading near 1.618 harmonic ratio (one of the most extreme ratio in harmonic arsenal) of previous top i.e. Rs 147.8.
Already having position then one should book partial profits. If considering fresh buying then wait for counter to come near Rs 140. Till then wait and watch.
Container Corporation of India
CONCOR has corrected almost 23 percent from its high of Rs 718 made on April 2022. On daily chart it has formed Bullish Bat pattern with potential reversal zone of Rs 600.
On indicator front, daily RSI it has formed double bottom near 30 levels along with implusive behaviour which means counter is ready for upside momentum. One should buy this counter in small tranche at current market price and another near Rs 600 with upside potential of Rs 700. Support can be expected near Rs 570.
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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