The market remained under pressure for the sixth consecutive session yesterday with the Nifty50 closing decisively below the psychological 17,000 mark, tracking correction in global counterparts. Banking & financial services, metal, oil & gas, and select FMCG stocks were caught in a bear trap.
The BSE Sensex fell more than 500 points to 56,598, and the Nifty50 corrected nearly 150 points to 16,859, while the Nifty Midcap 100 index declined third of a percent and the Nifty Smallcap 100 slipped half a percent.
The elevated volatility continued to support bears at Dalal Street. India VIX, the fear index increased by 2.44 percent to 22.10 levels.
Stocks that outperformed the broader markets included India Cements which rallied 8 percent to Rs 250.25, which formed strong bullish candlestick pattern on the daily charts and engulfed previous two bearish candles.
Dr Lal PathLabs shares gained 1.7 percent to Rs 2,694.35, continuing uptrend for seventh consecutive session. It has seen formation of bullish candle on the daily charts with higher high higher low formation for seven straight sessions, and has given a breakout of downward sloping resistance trend line adjoining April 8 and August 26.
Glenmark Pharma rose 2.2 percent to Rs 382.75, continuing uptrend for second day in a row and formed bullish candle on the daily charts with making higher high - higher low.
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:
Glenmark Pharma has witnessed a very sharp correction of 49 percent between July 2021 and June 2022. Since then the stock has been consolidating between Rs 360-400 (see chart) and it has made a solid base near Rs 375 levels.
On a weekly scale, the said counter has formed an Inverted Bullish Hammer near support zone along with weekly RSI (relative strength index) has formed an impulsive structure which is adding more confirmation for upside in coming days.
One can hold (if already bought) and add (if considering fresh buy) at the current market price. Upside is seen till Rs 450 with credible support seen at Rs 360.
On the daily chart, Dr Lal PathLabs has been making higher highs and higher lows since the last couple of months. Also volume is picking up on a daily basis which is complementing its up move.
From Indicator perspective, weekly RSI (relative strength index) is above 50 along with weekly MACD (moving average convergence divergence) is near zero line after bullish cross which further confirms upside in counter.
One can buy in small tranches at current levels. Upside is expected till Rs 3,000 and support is seen around Rs 2,450.
On the monthly chart, the counter has been rejected from its resistance levels of approximately Rs 280-290 which is also its historical top.
Over the last three months, the stock has seen 86 percent appreciation. If already holding, then one should book some profits between Rs 270-280 levels if tested again in a few sessions.
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