The market had a disappointing session, though it managed to recoup significant losses on October 10, amid caution ahead of the FOMC minutes scheduled to be released for September meeting and the September FY23 quarter earnings.
All the sectors, except information technology, joined the down swing, while the negative breadth weighed on the broader markets as about two shares fell for every gaining share on the NSE. The Nifty Midcap 100 index was down nearly one percent and Smallcap 100 index dropped half a percent.
The BSE Sensex declined more than 200 points to 57,991, and the Nifty50 slipped 74 points to 17,241, while the Nifty Midcap 100 index fell nearly 1 percent and Smallcap 100 index dropped half a percent as two shares declined for every share rising on the NSE.
Stocks that were in full action and bucked the market trend included Gravita India which jumped 4 percent to Rs 356.5, the highest closing level since March 24 and formed big bullish candle on the daily charts, continuing uptrend for fourth consecutive session, and making higher high higher low formation for seventh straight session. The volumes remained high in last three sessions in a row and has seen a breakout of long down ward sloping resistance trendline adjoining February 9 and September 21.
Cochin Shipyard erased gains but still closed in green with 0.4 percent gains at Rs 527.10, forming small bodied bullish candle which resembles Shooting Star kind of pattern on the daily charts which is trend reversal pattern. The stock continued uptrend and higher high formation for seventh consecutive session, while the volume was above average for sixth session in a row.
Jyothy Labs shares gained 2 percent to close at Rs 200.80, the highest closing level since January 10, 2019, continuing uptrend for third consecutive session.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
On the weekly charts of Cochin Shipyard, we can spot that the prices have broken the prior swing high of Rs 433.90 (June 2021), which initiated the prices to form Higher High, Higher Low formation.
Prices on the daily timeframe are continuously hovering around the upper Bollinger band pointing towards the rising volatility of the prices on the upside.
The stock is currently trading above all its key averages i.e. 50, 100, 200 days EMA (exponential moving average), confirms the uptrend.
RSI (relative strength index) plotted on the daily timeframe is roaming between the 90 and 60 levels which reflects the strong momentum built up in the stock.
We advise traders and investors to hold this stock with the stop-loss of Rs 435 on the closing basis for the target of Rs 680 levels.
Jyothy Labs is moving upward while forming higher high, higher low pattern which tells that the trend is on the upside.
Post breakout from the rounding bottom pattern in August 2022, prices retested the neckline and have shown a bounce on upside pointing towards beginning of the trend on the upside.
Prices on the daily timeframe are above key moving averages (50 & 200 days EMA) which confirms the trend is on the upside.
RSI on the weekly as well as on daily timeframe have sustained above 50 mark reflecting strong momentum in the stock.
We advise traders and investors to buy this stock with the stop-loss of Rs 185 on the closing basis for the target of Rs 250 levels.
Gravita India is currently trading at record high levels which already shows that the stock is in strong momentum.
On the daily timeframe, we can spot the change in the polarity by the prices, which shows the bullish sentiments of the prices.
The stock has started to move in Higher High, Higher Low formation with rising volumes. This tells that the prices are pushing the prices higher.
Prices on the daily timeframe have given a breakout of last 50 days while at the same time have penetrated the upper Bollinger.
We recommend traders and investors to buy this stock for the target of Rs 400 followed by Rs 450 where the stop-loss must be Rs 325 on the closing basis.
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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