The market wiped out all gains in afternoon and closed lower on June 8 after the Reserve Bank of India hiked repo rate by 50 basis points (bps) to 4.9 percent and raised inflation projection for full year to 6.7 percent (up from 5.7 percent earlier).
The BSE Sensex fell more than 200 points to close below 55,000 and the Nifty50 has broken crucial 16,400 mark and lost 60 points to 16,356, continuing downtrend for fourth consecutive session.
The broader space also traded in line with frontliners as the Nifty Midcap 100 and Smallcap 100 indices corrected half a percent and third of a percent respectively. About three shares declined for every two advancing shares on the NSE.
After the RBI policy, the volatility has fallen below 20 mark, which is a bit of positive for the market but experts said unless and until it sustains below that levels for a long period of time, the volatile swings can't be ruled out.
Stocks that were in action included Engineers India which jumped 4.75 percent to Rs 62.90, Elgi Equipments which gained 5 percent at Rs 399.95, and ITD Cementation India which climbed 8.5 percent to Rs 66.45.
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:
The counter has been under pressure and making lower highs and lower lows. At current juncture, it has found support near Rs 58-60 and has formed a nice base near said levels.
On weekly chart, it has shown bullish divergence i.e. weekly RSI (relative strength index) is making higher lows whereas price action is making lower lows.
One can buy at current levels with upside potential till Rs 81 & support is expected near Rs 55.
Though Elgi Equipments looks lucrative at current levels, one should wait because the stock is trading near its previous top Rs 422.30, which is also an all-time high.
Massive resistance is seen at Rs 415-420. If one has already bought this at lower levels then book some profit between Rs 405-420.
Fresh buying will only trigger once price action breaks above Rs 422-423 and sustains above it for sometime. As of now wait and watch for Elgi Equipments.
Currently ITD Cementation is making lower highs & lower lows and is well placed at historical support of Rs 60.
On indicator front, weekly RSI has displayed impulsive behaviour near 30 levels which is a sign of possible upside.
One can buy this at current market price with upside view of Rs 88 and with plausible support of Rs 55.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
