The market widened losses on the first day of the week as traders seem to have turned cautious ahead of outcomes of several central bank meetings, including FOMC and European Central Bank. On December 13, the BSE Sensex lost over 500 points to 58,283, and the Nifty50 declined 143 points to 17,368.
The broader markets also corrected during the day but the pressure was less compared to equity benchmarks. The Nifty Midcap 100 index was down 0.25 percent and Smallcap 100 index fell 0.11 percent.
Stocks that were in focus include Strides Pharma Science, Birlasoft and Piramal Enterprises, which were first, second, and fourth biggest gainers in the futures and options segment.
Strides Pharma Science climbed 6.24 percent to Rs 489.20, while Birlasoft jumped 5.29 percent to Rs 504.35. Piramal Enterprises was up 3.63 percent at Rs 2,746.30, while Polycab India rose 2.98 percent to Rs 2,545.30.
Here's what Karan Pai of GEPL Capital, recommends investors should do with these stocks when the market resumes trading today:
Strides Pharma on the weekly time frame can be seen moving lower ever since it tested a high of Rs 999 in January. The prices have been moving between the lower Bollinger bands and the 20-week SMA (simple moving average) for quite some time.
The stock shows signs of a pullback towards the 20-week SMA. We can, hence, expect the prices to move higher and test the Rs 550-570 mark.
The RSI (relative strength index) plotted on the weekly time frame can be seen placed below the 50 mark, indicating presence of bearish momentum in the prices.
The overall tone of the stock seems to be bearish. Investors who are holding the stock can use this pullback towards the Rs 550-570 mark to exit their position. We also recommend a strict stop loss of Rs 440 on a closing basis.
Piramal Enterprises on the longer time frame seems to be maintaining the higher high higher low pattern since March 2020. On the medium term charts can be seen moving in a range for the past couple of weeks. It now moves higher after bouncing off the lower edge of the consolidation.
The RSI plotted on the weekly time frame can be seen moving higher towards the overbought level after forming a bullish hinge near the 50 mark, indicating increasing bullish momentum in the prices.
Going ahead, we believe, the stock can move higher towards the Rs 3,014 mark immediately, If the prices manage to sustain above this level, we might see an up move towards Rs 3,477.
Investors can continue to hold on to their positions with a target of Rs 3,014 and Rs 3,477 eventually. We would recommend a strict stop loss of Rs 2,350 on closing basis.
Birlasoft moved out of a five-month consolidation in the week started November 15 and managed to sustain above this level ever since. This up move was also backed by good volume buildup indicating participation in the up move.
On the indicator front the RSI plotted on the weekly time is moving higher after forming a bullish hinge near the 50 mark, indicating increasing bullish momentum in the prices.
The prices action suggests that the prices might move higher towards Rs 583 in the coming sessions. If the prices breach the Rs 583 level, we might see further up move towards the Rs 635 mark.
Investors can continue to hold on to this position for a target of Rs 583 and Rs 635, and maintain a strict stop loss of Rs 430 on closing basis.
Polycab India has been moving between the upper Bollinger band and the 20-week SMA and has been forming a higher high higher low pattern since March 2020.
The stock seems to be moving higher after bouncing off the 20-week SMA.
On the indicator front, the RSI plotted on the weekly time frame can be seen moving higher after forming a bullish hinge near the 50 mark, indicating increasing bullish momentum in the prices.
Going ahead, we expect the prices to move higher towards the Rs 2,806 mark immediately. If the prices breach this level, we might see further up move towards the Rs 3,018.
Investors holding this stock can continue to hold on to it with a target of Rs 2,806, followed by Rs 3,018, and maintain a strict stop loss of Rs 2,280 on closing basis.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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