The market extended losses for the second consecutive session on February 17, weighed by weak global cues as traders kept a close watch on the developments related to the Ukraine-Russia tensions. Banks, select IT, and metal stocks pulled the markets down.
The BSE Sensex fell more than 100 points to close near 57,900, while the Nifty50 declined 18 points to close at 17,305. The broader markets also closed lower with the Nifty Midcap 100 and Smallcap 100 indices falling 0.3 percent and 1 percent, respectively.
Stocks that were in focus include Shriram Transport Finance Corporation which was the biggest gainer in the futures & options segment, rising 4.66 percent to Rs 1,277.45. Adani Power was up 4.14 percent at Rs 132 and Page Industries climbed 2.34 percent to Rs 42,236.1.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
Shriram Transport Finance Corporation
After a sharp correction, the stock took the support near Rs 1,140 and reversed sharply. It is now trading near 50-day SMA (simple moving average) with higher bottom formation which is broadly positive.
In addition, on the daily charts, it has formed long bullish candle that also support short term uptrend. We are of the view that, the medium term trend is still in to the weak side but strong possibility of pullback rally is not ruled out, if it succeeds to trade above 50-day SMA. Above which, it could move up to Rs 1,300-1,350.
In this month so far, the stock rallied over 25 percent. After the Rs 120 breakout, the stock consistently showed a higher bottom formation which is broadly positive.
On the daily and weekly charts, it has shown promising price volume breakout formation which support further uptrend.
For the trend-following traders, Rs 122-125 would be the key support level. Above which the positive momentum is likely to continue till Rs 140-147.
On the daily charts, the stock has made a triangle formation. It now hovers in the range of Rs 39,000 to Rs 43,000 and sees non-directional activity. Traders are perhaps waiting for the either side breakout.
For the bulls, Rs 43,500 would be the important breakout level to watch. And if the stock manages to close above the same, we can expect a quick uptrend rally towards Rs 44,500-45,000.
On the flip side, if it trades below Rs 41,000 or 50-day SMA, it may increase further weakness up to Rs 39,000.
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