The market erased all its opening gains in late morning deals and settled the session in negative terrain for the seventh consecutive session on September 29 following downtrend in global counterparts.
The BSE Sensex fell 188 points to 56,410, and the Nifty50 declined 40 points to 16,818, while the Nifty Midcap 100 and Smallcap 100 indices outperformed benchmark indices, rising 0.4 and 0.6 percent respectively.
India VIX, which measures the expected volatility in the market, remained at elevated levels, though it fell 3.58 percent to 21.30 levels.
Stocks that were in action and outperformed broader markets included Jindal Steel & Power which gained 3.6 percent at Rs 418.2, continuing uptrend for third consecutive session, while Mazagon Dock Shipbuilders rallied 7.7 percent to end at record closing high of Rs 461.85, forming a bullish candlestick pattern on the daily charts.
RITES also jumped more than 7 percent to Rs 324, the highest closing level since January 29, 2020 and formed a large bullish candlestick pattern on the daily charts with robust volumes.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
After a sharp correction, the stock took support near Rs 400 and reversed. On last Thursday, despite tepid market conditions, the stock held the positive momentum and rallied over 3 percent. However, currently the stock is witnessing non-directional activity perhaps, traders are waiting for the either side breakout confirmation.
For the bulls now, Rs 422 or 200 days SMA (simple moving average) would be the important breakout level to watch. And if, the stock manages to close above the same, we can expect quick uptrend rally towards Rs 440-445.
On the flip side, trading below Rs 410 or 50 days SMA, it may increase further weakness till Rs 400-385.
After a short term correction, the stock has formed double bottom formation near Rs 410. On last Thursday, the stock bounced back sharply, rallied over 8 percent. On daily charts the stock has formed long bullish candle and currently it is comfortably trading above 20 days SMA (simple moving average) level of Rs 430.
For trend-following traders now, Rs 445 would be the sacrosanct level. Trading above the same we can expect uptrend continuation wave up to Rs 485-500. On the flip side, below 20 days SMA or Rs 430 uptrends would be vulnerable.
The stock has rallied nearly 8 percent on September 29. On last Thursday, it quickly cleared the short term resistance of Rs 315 with a strong volume activity and after a promising intraday rally, it succeeded to close above the same.
In the short term time frame, the stock has formed a strong price volume range breakout formation. The texture of the pattern suggests breakout action is likely to continue in the near term if the stock succeeds to trade above Rs 310 level.
For the breakout traders, Rs 310 would be the key level to watch. Above which the stock could move up to Rs 350-370. On the flip side, below Rs 315, traders may prefer to exit from the trading long positions.
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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