Bears further tightened their grip over Dalal Street. The BSE Sensex crashed more than 1,500 points to close below 57,500, and the Nifty50 fell more than 460 points to end below 17,150 as traders maintained caution ahead of Fed meet outcome and the Union Budget.
All sectoral indices succumbed to selling pressure with the Nifty Metal falling the most, down 5 percent and Nifty IT that declined 3.4 percent. Nifty Bank, Auto, Financial Services, FMCG and Pharma indices were down 1.7 percent to 2.6 percent.
The broader markets hit hard with the Nifty Midcap 100 and Smallcap 100 indices declining 3.86 percent and 4.78 percent.
Stocks that were in focus include Sharda Cropchem which surged 15.42 percent to Rs 437.80 and Bandhan Bank which was the biggest gainer in the futures & options segment, rising 4.18 percent to Rs 307.85.
Among others, Cipla was also in focus which jumped 2.84 percent to Rs 892.10 and Lupin which climbed 2.06 percent to Rs 922, while Global Education was locked in 10 percent upper circuit at Rs 80.15.
Here's what Malay Thakkar of GEPL Capital, suggests investors possessing these stocks when the market resumes trading today:
Sharda Cropchem broke out of a consolidation (Rs 386-287) in the week started January 17, 2022. This up move was backed by good volume buildup indicating participation in the breakout. On January 24, the prices managed to sustain above the breakout level.
On the indicator front the prices have been riding the upper Bollinger Bands for the past couple of weeks with the bands expanding, indicating increasing volatility in the prices. The RSI plotted on the weekly time frame is placed above the 50 mark and is moving higher, indicating increasing momentum in the prices.
Investors holding long positions in this stock can hold on to their positions with a target of Rs 511 and Rs 573 and a strict stop loss of Rs 390 on the daily closing basis.
Bandhan Bank has been forming a higher high higher low pattern after forming a morning star pattern on the weekly charts. On the shorter time frame, we can see the prices drifting sideways when the benchmark Nifty has been falling for the past five sessions.
On the indicator front, the RSI (relative strength index) plotted on the weekly chart can be seen placed above the 50 mark and moving higher, indicating presence of bullish momentum in the prices.
Immediate resistance zone for the stock is placed at Rs 330-348. If the prices breach above the Rs 348 mark we might see the prices move higher towards Rs 430.
Investors holding this stock can continue to hold it with a strict stop loss of Rs 280 on daily closing basis.
Lupin has been rangebound since August 2021 and has been moving between Rs 996 and Rs 854. For the past four weeks, the stock has been hovering around the 20-week SMA (simple moving average).
On the indicator front, the RSI plotted on the weekly chart is placed below the 50 mark, indicating lack of bullish momentum in the prices.
From a short-to-medium-term perspective, we might see the prices move higher towards the Rs 996-1000 mark. If the prices managed to breach above this level we might see the prices move higher towards the Rs 1,115 mark.
Investors holding this stock can continue to hold on to the position with a stop-loss of Rs 852 on the daily closing basis.
On weekly charts, Cipla is moving in a rectangle formation (Rs 850-1,000) for the past 10 months.
The stock has seen a change in polarity at the Rs 850-860 zone and has been taking support and bouncing from the Rs 850-860 zone. The RSI indicator is confirming the range and forming early positive reversal signals.
One can continue holding the stock and expect it to move higher towards Rs 1,000 level. If the stock manages to break and sustain above Rs 1,000 it can move towards Rs 1,140.
Downside support for the stock lies at Rs 850-860 zone.
Global Education stock was locked at Upper circuit during trading on Monday (January 24).
With the recent move the stock has closed at the highest level in since December 2020 indicating strength in the underlying in the shorter term.
On the weekly timeframe, the stock has made a rounding bottom pattern.
Traders can continue holding the stock and can expect the stock to move towards Rs 92 followed by Rs 100 levels.
A strict stop loss of Rs 73 on daily closing basis should be maintained for this setup.
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.