Bears ruled Dalal Street on Wednesday. The benchmark indices corrected 1 percent dragged by banking and financials, FMCG, and IT stocks. The BSE Sensex fell more than 650 points to close at 60,099, and the Nifty50 declined 175 points to 17,938, while the broader markets outperformed the equity benchmarks.
The Nifty Midcap 100 index was down 0.06 percent, and the Nifty Smallcap 100 index gained 0.01 percent.
Stocks that were in focus include ONGC, which was the biggest gainer in the Nifty50, rising 3.91 percent to Rs 170.25, while Biocon was the biggest gainer in the futures and options segment, rising 5.35 percent to Rs 367.35, and Bank of Baroda, which was the fifth biggest gainer in the futures and options segment, climbing 3.9 percent to Rs 95.85.
Among others, Precision Wires was locked in 20 percent upper circuit at Rs 122.75, and Tata Elxsi hit a record high of Rs 7,170, before closing 9.42 percent higher at Rs 6,977.25.
Here's what Mehul Kothari, of Anand Rathi Shares & Stock Brokers, recommends investors should do with these stocks when the market resumes trading today:
During October 2021, Bank of Baroda confirmed a breakout from bullish pattern, which resembles Inverse Head and Shoulder. In addition, recently the stock has managed to close above its 200-week's SMA (simple moving average).
The theoretical target for this comes around Rs 140–150. Thus, we advise investors to hold the stock for few months. On the downside, support is at Rs 75.
Biocon has been in a strong rising uptrend and the breakdown of the trend would happen only below Rs 300 mark. Thus, investors should continue to hold the stock with a stop-loss of Rs 300.
On the other hand, on daily chart the stock is still struggling below its 200-day moving average and that level is near to Rs 380 mark. Thus, traders can go long in the stock once a close above Rs 380 for fresh momentum on the upside.
Since past few months, ONGC has done phenomenally well if we compare its price action of few years. The stock is in strong uptrend and currently on the verge of fresh breakout.
A monthly close above Rs 175 would open doors for Rs 200 and new life time high levels. Thus traders should adopt buy on dips strategy in the stock while investors should keep holding their positions. On the downside, support is placed at Rs 130 mark.
The long-term chart of Precision Wires depicts that the stock is approaching a strong resistance of Rs 140 which if formed by the placement of upper end of the rising channel. Thus, at this point in time, traders should remain cautious and avoid aggressive bets in the stock since risk reward ratio is not favourable.
On the other hand, investors should think about booking some of their profits near Rs 140 level.
Tata Elxsi has been one of the top outperformers from the IT space and it has given phenomenal returns to its investors. It has given a breakout on smaller time frame and there is no sign of profit-booking.
Thus, investors should continue to hold the stock and review only below Rs 5,500 mark. Traders can look for some dip to go long due to the recent fresh breakout.
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