After hitting record highs, the market mood changed completely in favour of bears that pulled down the benchmark indices by 2.6 percent from the all-time highs of the last four consecutive sessions, including 0.35 percent loss seen on October 22.
On Friday, the selling pressure was seen in auto, FMCG, IT, metals and pharma stocks. But banking and financials helped the market curtail the losses. The BSE Sensex fell over 100 points to close around 60,800 levels and the Nifty50 lost over 60 points to close at 18,115 levels.
The broader markets continued to hit hard as the Nifty Midcap 100 index was down 0.87 percent and Smallcap 100 index 1.25 percent on Friday.
Stocks that were in focus include Federal Bank, which hit a multi-year high of Rs 105.70, the highest level since July 2019, before settling with 7.61 percent gains at Rs 103.90, reacting to the September quarter earnings. TVS Motor Company also responded strongly to its quarterly earnings, gaining 7.41 percent to Rs 619.80.
Rail Vikas Nigam was also in action on Friday, freezing at 20 percent upper circuit to close at Rs 43.05, and HSIL, too, witnessed huge buying interest, climbing 13.83 percent to Rs 251.45.
Here's what Mehul Kothari of Anand Rathi Shares & Stock Brokers, recommends what investors should do with these stocks when the market resumes trading today:
Federal Bank has seen a strong technical breakout in the last trading week and a follow-up buying has been seen for the consecutive week on the back of robust volumes indicating inherent strength in the counter. The stock is currently placed above all its major exponential moving averages and is looking strong on the technical chart.
On the oscillator front, 14 period RSI (relative strength index) has headed higher along with the MACD that is placed well above the signal line post positive crossover affirming a bullish stance in the counter.
Looking at the technical parameters, the stock is well verse to reclaim its all-time high zone in the coming future.
TVS Motor Company has seen a strong technical pattern breakout on the daily time frame which was contrived near the cluster of the exponential moving averages and soared higher. At the current juncture, the stock is placed near the sloping trend line of the all-time high and 52-week high, breaching which it could further gain momentum.
However, on the downside, the recently made gap could be seen as an immediate support zone followed by the cluster of exponential moving averages. On technical indicator, MACD has witnessed a golden crossover suggesting the bullish stance to be continued in the near term.
Rail Vikas Nigam has witnessed a huge consolidation breakout on the back of robust volumes in the past couple of trading sessions indicating strong hands accumulating the counter post the breakout.
On oscillator indicator, 14-period RSI has seen a huge spike followed by the MACD indicating bullish stance in the counter. Even the stock has soared above all its major exponential moving averages affirming inherent strength.
HSIL is in a cycle of higher highs higher lows in all time frames indicating inherent strength in the counter. In the recent period, the stock has seen a strong bullish candlestick pattern that has been backed by robust trading volumes, near to the mean of the Bollinger Band (20, 2) on the weekly time frame indicating strong momentum to be seen in the near term.
The stock is hovering near its all-time high zone breaching where a fresh round of action could be seen in the coming future. Even on the oscillator front, the 14-period RSI has seen a strong resurgence from lower ground indicating strength in the uptrend for the counter.
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his 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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