The market had a strong start but reversed all those gains in a spate of profit-booking in the last couple of hours of trade and closed with marginal losses on July 5. Select banking and financial services, auto, FMCG and IT stocks weighed down the market.
The BSE Sensex fell more than 100 points to 53,134 and the Nifty50 declined 25 points to 15,811. The broader markets ended flat with a negative bias following mixed breadth.
The market has been in a broader range of 15,500-16,000 and trying hard to break the range on the upside but given the elevated volatility, higher oil prices, consistent FII inflow and tepid global cues, the upside seems to be capped, experts said.
Stocks that were in action and bucked trend on Tuesday included Elgi Equipments which jumped nearly 9 percent to close at Rs 374.5 and formed strong bullish candle on the daily charts with much higher than average volumes. Oscillators RSI (relative strength index) and Stochastic with more than 50 levels are showing uptrend.
Mahindra Logistics rose 5.4 percent to Rs 487, formed bullish candle on the daily charts with above average volumes. MACD (moving average convergence divergence) indicated the trend remained up with RSI and Stochastic showing positive sentiments.
Avenue Supermarts climbed over 4 percent to Rs 3,639 and has seen a formation of bullish candlestick pattern on the daily charts with higher than average volumes. Even sentiments are positive as RSI and Stochastic showed uptrend.
Here's what Ruchit Jain of 5paisa.com recommends investors should do with these stocks when the market resumes trading today:
In the month of January 2022, the prices breached the 200-day EMA (exponential moving average) support and had then seen sharp price wise correction.
After correcting upto Rs 400, prices have now been consolidating in a broad range and we have seen in between positive moves with good volumes.
On the short term chart, the short term average has given a positive crossover from the medium term average indicating a short term pullback. However, it would be crucial to see whether the stock surpasses the '200 EMA' on the way up as this could now become a crucial hurdle.
Hence, a pullback move towards Rs 530-530 could be seen in the near term. The immediate support for the stock is placed at Rs 455.
After a price wise corrective phase, the stock has recently formed a support base around Rs 3,200. In last few weeks, the price up move has been backed by good volumes which is a good sign.
The stock could witness a pullback move towards Rs 3,900 in the near term. However, it will be crucial to see if the stock surpasses that hurdle as it could be a make or break level for a medium term trend.
The immediate support for the stock is now placed around the swing low support of Rs 3,330.
This stock has seen a decent outperformance to the broader markets in the last couple of months. Prices have a good support around Rs 330 while immediate hurdle is seen around Rs 420.
From a medium term perspective, traders can continue to hold the long positions until there are signs of reversal. A move above Rs 420 will then lead to a continuation of the uptrend in the stock.
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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