After a 4 percent rally, the market extended correction for the second consecutive session, falling 0.25 percent on February 4, pulled down by banking and financial services, auto, pharma and select IT stocks.
The BSE Sensex fell nearly 150 points to close below 58,700, and the Nifty50 declined more than 40 points to close at 17,516, while the selling pressure in the Nifty Midcap 100 and the Smallcap 100 indices was a bit intense, compared to the benchmarks, down 0.76 percent and 0.92 percent respectively.
Stocks that were in focus include Torrent Power, Hindustan Copper and Cholamandalam Investment which were the top three gainers in the futures and options segment on Friday. Torrent Power jumped 7.5 percent to Rs 580.35, Hindustan Copper climbed 6.46 percent to Rs 137.70 and Cholamandalam Investment soared 5.13 percent to Rs 675.70.
Among others, Fine Organics Industries hit a life high of Rs 4,178.25, before settling at a record closing high of Rs 4,086.25 with 4.77 percent gains, and MAS Financial Services returned to December levels, surging 16.59 percent to Rs 659.55. It was the highest closing since December 27.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
Cholamandalam Investment and Finance Company
On the weekly chart, the stock is trending up forming higher tops and bottoms indicating a strong up trend. With current gains the stock is poised for a three month "multiple resistance zone" breakout at Rs 660 levels. Huge volumes near breakout zone signals rising participation.
The stock is well placed above its 100-200 day SMA (Simple moving average) which remains a crucial support zone. The daily, weekly and monthly RSI (relative strength index) continue to remain bullish along with positive crossover which supports upside momentum.
With current weekly close, the stock has decisively broken out its three-year multiple resistance zone on a weekly closing basis along with huge volumes, indicating a strong comeback by bulls.
The daily, weekly and monthly Band-Bollinger 'buy' signal indicates rising momentum. The stock is well placed above its important moving averages of 100 and 200 day SMA which signifies a strong up trend.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 4,500-4,600, with downside support zone of Rs 3,600-3,500 levels.
Since October 2021, the stock was consolidating within Rs 110-140 levels, however, with current weekly close the stock has observed breakout on a closing basis indicating bullish sentiments. This price action has also resulted in "rounding bottom" formation which reconfirm resumption of the earlier up move.
Huge volumes at breakout zone signal increased participation on a rally. The stock is well placed above its 20-day SMA (Rs 130) which remains a crucial support zone. The weekly and monthly RSI continue to remain bullish along with positive crossover which supports upside momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 160-170, with downside support zone of Rs 110-100 levels.
The stock has reversed a declining trendline off the December 2021 highs indicating short squeeze at lower levels. Also the short covering rally has accompanied very high volumes indicating buying at lower levels. The stock is well placed above its 20-day SMA which remains a crucial support zone.
The weekly and monthly RSI continue to remain bullish along with positive crossover which supports upside momentum. Investors should buy, hold and accumulate this stock with an expected upside of Rs 750-770, with downside support zone of Rs 550-520 levels.
On the weekly chart, the stock is trending up forming higher tops and bottoms indicating a strong up trend. With current gains the stock is poised for a three month "Descending triangle" breakout at Rs 575 levels. Huge volumes near breakout zone signals rising participation.
The stock is well placed above its 100-200 day SMA which remains a crucial support zone. The daily, weekly and monthly RSI continue to remain bullish along with positive crossover which supports upside momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 650-670, with downside support zone of Rs 540-520 levels.
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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