The market fell seven-tenth of a percent on November 10 as global markets turned cautious ahead of the US inflation numbers which came in less-than-expected at 7.7 percent for October against 8.2 percent in previous month.
The BSE Sensex corrected more than 400 points to 60,614, and the Nifty50 fell nearly 130 points to 18,028, while the Nifty Midcap 100 and Smallcap 100 indices declined over 1 percent each on weak breadth.
India VIX, which measures the expected volatility in the market, dropped 2.18 percent to 15.57 levels, providing the great support to the market.
Stocks that buck trend included Godrej Properties which was the biggest gainer in the futures & options segment, rising 5.6 percent to Rs 1,235.35 and formed large bullish candle on the daily charts with robust volumes.
Neuland Laboratories shares were locked in 20 percent upper circuit at Rs 1,694, the biggest closing level since December 10, 2021 and formed long bullish candle on the daily charts with strong volumes.
Escorts Kubota was also in action, rising 1.66 percent to Rs 2,020.45 and formed bullish candle with long upper wick on the daily charts with above average volumes.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
After a previous day's sharp selloff, on last Thursday the stock bounced back sharply. Despite weak market conditions the stock rallied over 5 percent and succeeded to close above 20 days SMA (simple moving average) which is broadly positive.
However, the short term texture of the stock is still non-directional perhaps traders are waiting for either side confirmation. For the bulls, Rs 1,275 or 50 days SMA would be the key level to watch out. If the stock succeeds to close above the same then it could move up to Rs 1,325-1,350.
On the flip side, below Rs 1,180 it could slip till Rs 1,150-1,135.
The stock hit a 20 percent upper circuit on November 10. That rally was price dominating along with incremental volume activity.
On daily and weekly charts stock has formed robust Breakout continuation pattern which suggests uptrend momentum likely to persist in the near future.
However, due to temporary overbought conditions we could see rangebound activity in the near future. Hence, buying on corrections and sell on rallies could be the ideal strategy.
For the trend following traders, Rs 1,650 and Rs 1,630 would act as a key support zones. If the stock succeeds to trade above the same then breakout continuation formation is likely to continue till Rs 1,750-1,800.
However, below Rs 1,630 traders may prefer to exit from the trading long positions.
After a short term correction, the stock is hovering within the range of Rs 1,950 to Rs 2,050. Currently, the stock is consolidating near 20 and 50 days SMA.
For the traders, Rs 2,070 could be the technical breakout zone, above which the stock could move up to Rs 2,100-2,150.
On the flip side, fresh round of selling possible if the stock succeeds to trade below Rs 1,970 or 20 days SMA. Below the same it could slip till Rs 1,915-1,900.
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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