The market extended losses for third consecutive session with the benchmark indices declining 1.5 percent on October 11, pulled down by global weakness amid mounting recession fears.
The BSE Sensex tanked 844 points to 57,147, driven by selling across sectors, while the Nifty50 closed below psychological 17,000 mark, down more than 250 points to 16,983.
The broader markets also joined the bears' party, falling more than the frontline indices. The Nifty Midcap 100 and Smallcap 100 indices slipped 1.7 percent each.
The volatility also remained on the higher side, keeping the bears in a strong position. India VIX, the fear index rose by 4.42 percent to 20.49 levels.
Stocks that bucked the trend and outperformed the broader markets included Bata India which was the biggest gainer in the futures and options segment, rising 1.6 percent to Rs 1,810 and formed strong bullish candle on the daily charts with robust volumes.
PCBL was up nearly 3 percent at Rs 136.35, the highest closing level since September 20 and formed decent bullish candlestick pattern on the daily charts with higher volumes in last 13 consecutive sessions. The stock has been in an uptrend since the double bottom kind of formation.
Glenmark Life Sciences shares rallied more than 7 percent to Rs 415 and formed healthy bullish candlestick pattern on the daily scale. Even the volume was quite strong for second consecutive session.
Here's what Ruchit Jain of 5paisa.com recommends investors should do with these stocks when the market resumes trading today:
The stock has been trading in a broad range since last few months where prices recently witnessed an upmove from its medium term support zone around Rs 1,550 to almost test the highs around Rs 2,000. However, the prices have cooled-off from the highs in last couple of weeks and have retraced the recent upmove buy 50 percent.
The momentum readings on the daily chart have reached the oversold zone and stock is trading near its support. Usually such setups leads to a pullback move or a short term consolidation phase.
The immediate supports are placed around Rs 1,750 followed by Rs 1,725 and stock could see a pullback move in the near term from this support range. The near term resistance for the stock is seen around Rs 1,870-1,900 range.
In last few weeks, the stock has managed to form a support base around Rs 120 as correction towards that support level has witnessed buying interest. The volumes in the recent price upmove were high while those on corrections were low.
The RSI oscillator on the daily chart has given a positive crossover indicating positive momentum. Hence, we expect the stock to continue some relative outperformance in the near term.
The immediate support for the stock is placed around Rs 120 while resistance is seen around Rs 145 and Rs 154.
Post listing, the stock has seen a sharp correction and the momentum readings were in a highly oversold zone. Such oversold set-ups usually lead to either a price-wise pullback move or some consolidation, and hence we have seen a price upmove in last couple of trading sessions.
However, the volumes in the prices upmove were good in last couple of sessions indicating buying interest in the stock in this price range.
Hence, the downside for the stock could be limited in the near term till these recent lows are intact. But follow up moves will be more important to keep a watch on and a confirmation of trend reversal is required to form a bullish view on the stock.
The support for the stock is placed in the range of Rs 390-375 while resistance will be seen around Rs 440 followed by Rs 470.
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