The market snapped three-day gains and closed below crucial levels - 62,000 on the BSE Sensex and 18,500 on the Nifty50 on December 15, falling more than 1 percent, tracking weakness in global peers after Fed signalled more rate hikes going ahead.
All sectoral indices closed in red with the Bank, IT, Financial Services, and Metal being the biggest losers, falling 1-2 percent, while the broader markets also corrected as the Nifty Midcap 100 index fell 1 percent and Smallcap 100 index was down six-tenth of a percent.
The BSE Sensex plunged nearly 900 points to 61,799, while the Nifty50 tanked nearly 250 points to 18,415 and formed long bearish candle on the daily charts as well as Evening Star kind of pattern, indicating more weakness in the market in coming sessions.
Stocks that bucked trend on Thursday including Fertilisers and Chemicals Travancore (FACT), which was locked in 20 percent upper circuit to end at record closing high of Rs 223.80 and formed robust bullish candle on the daily charts with large volumes. On monthly charts, it has seen a decisive breakout of horizontal resistance trend line adjoining June 2021 and November 2022, while on the daily charts, it has already seen a breakout of big horizontal resistance trend line adjoining several points (June 2021, January 2022 and November 2022).
Mahindra CIE Automotive shares jumped nearly 10 percent to Rs 315 and formed large bullish candle on the daily charts with strong volumes. The stock has seen a decisive breakout of small downard sloping resistance trend line adjoining October 20, and December 6 this year, as well as breakout of horizontal resistance trend line adjoining September 16 and December 6, 2022.
Finolex Cables was also in action, rising 5 percent to Rs 586.7 and formed long bullish candle on the daily charts with above average volumes. The stock has seen a breakout of small downward sloping resistance trend line adjoining November 30 and December 13, 2022, and long downward sloping resistance trend line adjoining November 22, 2021, and December 13, 2022.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
Fertilisers and Chemicals Travancore
On December 15, the stock made a fresh all-time high of Rs 223.90. In this week so far the stock rallied over 40 percent. The short term texture of the stock is bullish but mildly overbought on intraday charts.
Hence we could expect some profit booking at higher levels. For the bulls, Rs 235-250 would be the key resistance zones while Rs 210-200 would act as a crucial supports levels.
We are of the view that, as long as the stock is trading above Rs 200 the uptrend texture is likely to continue.
Buying on intraday corrections and sell on rallies would be the ideal strategy for the short term traders. On the flip side, below Rs 200, uptrend would be vulnerable.
After a short term correction, the stock has formed double bottom formation near 20 and 50-day SMA (simple moving average). On last Thursday the stock not only cleared the short term resistance of Rs 300 but succeeded to close above the same which is broadly positive.
It also formed long bullish candle on daily and weekly charts. For the positional traders, now Rs 300 or 50-day SMA would be the key level to watch. If stock manages to trade above the same then we can expect uptrend continuation wave up to Rs 335-350.
On last Thursday, the stock rallied nearly 5 percent. Despite weak market conditions, the stock held the positive momentum throughout the day. The stock is consistently taking support near 20-day SMA and at the same time facing resistance near Rs 590 levels.
The short term texture of the stock is non-directional perhaps, traders are waiting for the either side breakout confirmation.
For the bulls, Rs 595-600 would be the important breakout level to watch. And if, the stock manages to close above the same, we can expect quick uptrend rally towards Rs 625-635.
On the flip side, trading below Rs 565 or 20-day SMA may increase further weakness up to Rs 540-530.
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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