The market fell for the fourth straight session despite positive global cues, though there was smart recovery of 1 percent from the day's low on May 11. The BSE Sensex corrected more than 270 points to 54,088, while the Nifty50 strongly defended psychological 16,000 mark and closed with 73 points loss at 16,167.
The broader space was also under pressure with small-caps being hit hard driving the Nifty Smallcap 100 index down nearly 3 percent, while the Nifty Midcap 100 index was down four-tenth of a percent.
Technology, auto, and FMCG stocks pulled the market down, whereas banking and financial services stocks capped losses.
Gujarat Gas jumped 6 percent to Rs 537.40, SRF climbed 5.7 percent to Rs 2,234, and Navin Fluorine International rose 4.5 percent to Rs 3,947.
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:
SRF has corrected almost 24 percent from its top made on April 8, 2022 (i.e. Rs 2,773). At current juncture it has formed bullish AB=CD pattern on 4 hours chart with potential reversal zone of Rs 2,100-2,150.
On the indicator front, four hours RSI (relative strength index) has shown impulsive structure below oversold zone of 30 which is indicating that bears are losing steam.
Fresh buy can be initiated at current levels with expected upside till Rs 2,450 with solid support seen at Rs 2,100.
Gujarat Gas is trading in a range of Rs 480-540 since last one month. Currently said counter has tried to break range and tested Rs 555.
On the indicator front, daily RSI and MACD (moving average convergence divergence) are indicating upward momentum but one should wait and watch as of now until it closes above Rs 542 on daily close basis.
If it closes above Rs 542 then upside expected is Rs 620-630 with good support at Rs 500.
As of now, one should avoid this counter. On weekly chart there are lot of overhead resistances at Rs 4,160-4,350 along with bearish divergence seen on weekly MACD (refer chart).
If one is holding this counter, can book some profit at current levels. Fresh buying is not advised.
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