Global selloff amid US rate hike fears mauled Indian markets as frontline indices tanked more than 2.6 percent on June 13. The Sensex sank 1,450 points to 52,847, while the Nifty lost 400 points to 15,774.4, the lowest closing in 2022.
All sectors ended in the red. Nifty bank, auto, financial services, IT, metal, realty and oil & gas indices corrected 2-4 percent. Broader space, too, was hammered. The Nifty midcap 100 index closed 2.9 percent down and smallcap 100 index 3.9 percent.
Stocks in action included Honeywell Automation, which was the biggest gainer in the futures & options, rising 2.3 percent to 33,450. Rajesh Exports and Minda Industries were the top gainers in the Nifty500 index, climbing 5 percent to Rs 548.35 and up 3.5 percent at Rs 895.7, respectively.
Here's what Malay Thakkar of GEPL Capital recommends investors should do with these three stocks when the market resumes trading today:
Honeywell Automation has broken out of consolidation with decent volume activity. On the daily charts, the stock formed a Bullish Marubozu candle and ended at a month’s high.
The stock also managed to break and sustain above the 20-day simple moving average (SMA; Rs 31,896) for the first time since May 2, 2022.
On the indicator front, the relative strength index (RSI) indicator has bounced sharply from the oversold territory and moved upwards indicating bullish momentum in the counter.
The stock has the potential to move higher towards Rs 36,000 followed by Rs 36,700. On the downside, the Rs 32,000-mark would act as an important support for the stock.
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On June 13, the stock saw the highest volumes of the past months, indicating strong participation in the counter.
Throughout the downtrend, the stock has been facing rejection at the 20-day SMA. If the stock manages to break above the same moving average, we can see a trend reversal in the counter.
The RSI indicator has given a trendline breakout, indicating a pick-up in the momentum.
We advise traders to continue holding the stock and expect upside once its breaks above Rs 570. A strict stop-loss of Rs 520 should be maintained on a daily closing basis.
On long-term charts, Minda Industries is moving with higher highs and higher lows formation, maintaining a strong uptrend.
In the recent correction, the stock took support at the 38.2 percent Fibonacci retracement level.
On the indicator front, the RSI is moving higher after forming a bullish hinge near the 40-mark, indicating bullish momentum in the counter.
We advise traders to continue holding the stock and expect an upside towards Rs 990-1,000. On the downside, Rs 840 mark would act as a support for the counter.
Disclaimer: The views and investment tips expressed by 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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