The market made a good recovery in late trade and strongly defended critical support of 16,400 but still closed in the red and extended losses for the second consecutive session amid volatility on June 1.
The Sensex fell 185 points to 55,381 and the Nifty declined 62 points to 16,523 and formed a bearish candle on the daily charts, underperforming the broader space due to positive market breadth.
The Nifty midcap 100 index gained 0.04 percent and the smallcap 100 index rose 0.28 percent as about 1,022 shares advanced for 909 falling shares on the NSE.
India VIX, the fear index remained above the 20 mark, indicating continuity in volatile swings. It closed higher by 1.79 percent at 20.85 levels.
Stocks that were in action included ICICI Prudential Life Insurance Company that rallied 5 percent to Rs 548, Astral, which jumped 4.6 percent to Rs 1,810, and Shree Renuka Sugars that surged 11.5 percent to Rs 52.30.
ICICI Prudential Life Insurance Company and Astral were among top five gainers in the futures and options segment and also saw a long build-up on June 1.
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:
ICICI Prudential Life Insurance Company
The stock has been making lower highs and higher lows since last September 2021. The counter has given a nice triangle breakout along with daily relative strength index (RSI) bouncing from 50 and moving average convergence divergence (MACD) daily giving zero bullish crossover which is hinting at an upside.
At the current juncture, it is making an N wave which will get completed at Rs 622. One should buy at current market price with possible upside till Rs 622 and support is seen near Rs 510.
The counter has a classic setup which consists of Bullish AB=CD with a potential reversal zone of Rs 1,750-1,800. On the indicator front, daily RSI has made complex structure below 30 levels indicating sharp rebound till Rs 2,050.
Apart from RSI, the MACD daily has positive cross hinting that bears are losing steam and stock might go in consolidation followed by up move.
One can buy in small tranches at the current market price and another at Rs 1,700. The upside is expected till Rs 2,050 and support is seen at Rs 1,650.
The counter has given a clean monthly breakout from Rs 45 and the current market price is Rs 52.30. From the Ichimoku indicator point of view, the counter is in a clear uptrend along with Tenkan Sen, Kijun Sen, Span A and Span B complimenting positive price action.
From the investor point of view, one can buy at the current market price with a possible upside seen till Rs 72 and good support is seen at Rs 40.
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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