The market lost momentum and shed more than six-tenth of a percent on October 13 weighed by banking & financial services, and select information technology, FMCG and auto stocks.
The BSE Sensex fell nearly 400 points to 57,235, and the Nifty declined over 100 points to 17,014 yesterday, forming a bearish candle on daily charts. The broader markets also corrected led by weak breadth.
The Nifty Midcap 100 index slipped seven-tenth of a percent and Smallcap 100 index was down half a percent as about two shares declined for every rising share on the NSE.
Stocks that bucked the trend and performed better than broader markets included RITES which rallied more than 10 points to end at record closing high of Rs 380 and formed a large Bullish Engulfing candlestick pattern on the daily charts with robust volumes.
Tata Teleservices (Maharashtra) shares were locked in 5 percent upper circuit at Rs 104.75, recouping all the losses seen in previous three trading sessions and formed a bullish candle on the daily charts.
Triveni Engineering was also in action, rising nearly 4 percent to Rs 286.35 and moved closer to the high of September month, forming a strong bullish candle on the daily charts with above average volumes.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
On last Thursday, the stock rallied over 11 percent and made a fresh 52-week high of Rs 386.85. Despite tepid market conditions, the stock held the positive momentum.
On daily charts it has formed a long bullish candle and formed a higher bottom formation which supports further uptrend from current levels. A promising price volume breakout formation is indicating continuation of uptrend in the near future.
For the swing traders now, Rs 360 could be the key level to watch out for. If the stock manages to trade above the same then we can expect uptrend continuation wave up to Rs 400-425. However, below Rs 360 uptrend would be vulnerable.
After a long correction, the stock took support near Rs 100 and bounced back sharply. However, the medium term formation is still in to the down side.
Currently, the stock has formed a reversal formation but the important point is it is still trading well below the 50 and 20 day SMA (simple moving average) mark. The current texture of the stock is non-directional; perhaps traders are waiting for either side breakout confirmation.
For the bulls now, Rs 110 or 50-day SMA would be the key breakout level to watch, above which, the stock could move up to Rs 120-125.
On the flip side, sharp correction wave is possible if it succeeds to trade below Rs 99, below which, it could slip till Rs 95-90.
After a quick short-term correction, eventually the stock took support near Rs 240 and reversed. After promising reversal formation, the stock has formed a higher bottom formation near 200 day SMA (simple moving average) Rs 268.
Modest volume activity near important support zone and reversal formation suggests further upside from current levels.
For positional traders, 200 day SMA or Rs 265 could be the sacrosanct support zone, above which the stock could move up to Rs 310-330. On the flip side, below 200-day SMA uptrend would be vulnerable.
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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