Equity benchmarks as well as broader markets reeled under selling pressure on February 13, as most sectors took part in the downfall. The caution among traders was also seen ahead of the CPI inflation that eventually came in higher at 6.52 percent in January, up from 5.72 percent a month back.
The BSE Sensex was down little more than 250 points to 60,432, while the Nifty50 declined over 85 points to 17,771 and formed bearish candle on the daily charts.
On the broader markets front, the Nifty Midcap 100 and Smallcap 100 indices fell 1.5 percent each, while the volatility index India VIX climbed by 7.33 percent to 13.68 level, from 12.75 level, giving the discomfort for bulls.
Stocks that were in action included Oil India which had a strong gap up opening and jumped nearly 8 percent to Rs 241, the highest closing level since June 30, 2022, forming long bullish candle on the daily charts with robust volumes. The stock traded above all short erm as well as long term moving averages, which is a positive sign.
PB Fintech shares closed flat with a positive bias at Rs 526.15, the highest closing level since September 14, 2022. The stock has formed high wave kind of pattern on the daily charts, which indicates indecisiveness among bulls and bears about future market trend, especially after bullish candle formation for seven consecutive sessions. It has rallied more than 30 percent since February 2.
Info Edge tanked more than 9 percent to Rs 3,464, the lowest closing level since May 25, 2022, and formed robust bearish candle on the daily charts with long lower shadow indicating some buying at lower levels, with significantly high volumes. It fell below all short term and long term moving averages.
Here's what Vidnyan Sawant of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
After a correction in November 2021, PB Fintech has established a pattern of higher highs and higher lows. The stock recently broke out from an Eve & Adam Double Bottom pattern, signaling a reversal of the trend to the upside.
The Bollinger bands have opened with high volumes, indicating an increase in volatility for an upward price movement.
The relative strength index (RSI) on the daily timeframe is at its highest level, reflecting a strong upward momentum in the underlying trend.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 655 with a stop-loss of Rs 500 on the closing basis.
Since October 2022, OIL has formed a pattern of higher highs and higher lows, indicating a positive trend in the stock's performance.
A change in the stock's polarity around the level of Rs 217 suggests an increase in bullish sentiment.
The stock is above key moving averages, such as the 50-day and 200-day exponential moving averages, and a golden cross was observed in late December 2022, further confirming an uptrend.
The relative strength index (RSI) on the daily timeframe has shown a bullish reversal, reflecting a growing momentum in the stock's prices.
We recommend traders and investors to buy and accumulate this stock for the target of Rs 270 with a stop-loss of Rs 225 on the closing basis.
It is currently observed that NAUKRI is trading at levels near its 52-week low, reflecting the negative undertone of the prices. The recent trading session has witnessed a breakdown from a descending triangle pattern, which indicates a continuation of the prior downward trend.
This breakdown is further substantiated by higher volumes and an opening gap down in prices.
The stock has also surpassed the lower Bollinger band, indicating an increase in volatility for a downward price movement.
Additionally, the relative strength index (RSI) plotted on both daily and weekly timeframes remains below 50-mark, signaling a lack of upward momentum in the stock's performance.
Based on this analysis, it is advised for traders and investors to consider exiting their positions in this stock.
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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