The market extended selling pressure for the third consecutive session with the benchmark indices falling more than 1.7 percent on February 7, weighed down by correction in banking and financials, auto, FMCG, IT and pharma stocks.
The BSE Sensex slipped more than 1,000 points to 57,621 and the Nifty50 fell over 300 points to 17,214, while the Nifty Midcap 100 and Smallcap 100 indices were down more than 1 percent each.
Stocks that were in focus include GNFC, InterGlobe Aviation (IndiGo), and Bank of Baroda which were the top gainers in the futures and options segment. GNFC climbed 13.26 percent to Rs 515.55, InterGlobe Aviation jumped 9.91 percent to Rs 2,170.10, and Bank of Baroda rose 6.01 percent to Rs 112.95.
Among others, VIP Industries hit a fresh record high of Rs 696, before closing with 3.49 percent gains at Rs 670.85, and Responsive Industries was up 1.79 percent at Rs 201.65.
Here's what Malay Thakkar of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
GNFC has been forming a higher high, higher low pattern since March 2020. On February 7, 2022 the prices witnessed a massive gap up and tested a fresh 52-week high of Rs 535. This up move is also backed by good volume build up, indicating participation in the breakout.
On the weekly chart, we can see that the prices have moved out of a symmetrical triangle pattern.
On the indicator front, the RSI (relative strength index) plotted on the weekly chart can be seen placed above the 50 mark. The prices can be seen moving higher towards the overbought level, indicating increasing momentum in the prices.
Investors holding this stock can hold with a target of Rs 550. If the price manages to sustain above the Rs 550 mark, we might see the prices head higher towards Rs 594. We recommend a strict stop-loss of Rs 490 on the daily closing basis.
IndiGo, for the past couple of months, has been moving sideways in a range of Rs 1,771-2,400. For the past two weeks, the prices have been forming a higher high higher low pattern. On February 7, the stock gained momentum and moved above the 20-day SMA (simple moving average) to Rs 2,026. The up move was backed by good volume build-up, indicating participation in the up move.
On the indicator front, the RSI plotted on the weekly chart has moved above the 50 mark and is now moving higher towards the overbought level, indicating increasing bullish momentum in the prices.
Investors holding the stock can continue to hold and expect targets of Rs 2,380-2,460. If the prices manage to breach above this level we might see the prices head higher towards the Rs 2,650. We would recommend a stop-loss of Rs 2,026 on daily closing basis.
Bank of Baroda has been moving higher in a well channelled manner since February. On February 7, the prices moved higher towards the upper edge of the channel. This up move is backed by a strong volume build-up, indicating participation in the up move.
On the indicator front, the RSI plotted on the weekly chart can be seen forming a higher high higher low pattern and moving higher towards the overbought level, indicating increasing bullish momentum in the prices.
We expect the prices to move higher towards Rs 134. If the prices manage to sustain above Rs 134 mark, we might see the prices head higher towards the Rs 157 level.
We recommend a strict stop-loss of Rs 100 on daily closing basis.
VIP Industries has broken above the multi-year high this week with good volume activity. On daily timeframe the 20-day SMA (Rs 596) and 50-day SMA (Rs 568) is giving a bullish crossover.
The stock has broken out of a consolidation and Bollinger bands have started expanding indicating possibility of trending move ahead.
Investors can buy, hold and accumulate the stock with potential upside towards Rs 760 followed by Rs 810 levels. A strict stop-loss of Rs 620 should be maintained for this trade.
The stock has seen up move and made an all-time high this week. The recent up move in the stock price has been with very thin volumes which indicates lesser participation in the breakout.
Investors holding this stock can continue to hold the stock with a strict stop-loss of Rs 190 and expect the prices to move higher towards Rs 230 level.
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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