The correction led by steep fall in European banks following Silicon Valley Bank fallout dragged the market down to more than five-month low on March 15. The Indian stocks succumbed to the selling pressure for fifth day in a row due to decline in most of sectors barring metal and pharma.
The BSE Sensex was down 344 points at 57,556, while the Nifty50 dropped over 70 points to 16,972 and formed long bearish candlestick pattern on the daily charts. The index remained below 200-day EMA (17,567) as well as 200-day SMA (17,447) for fourth straight session.
However, there was outperformance in the broader markets thought the breadth was tilted in favour of bears. The Nifty Midcap 100 index rose 0.07 percent and Smallcap 100 index climbed 0.4 percent.
Stocks that performed better than broader markets included KPIT Technologies which surged 9 percent to Rs 847 on the NSE and formed robust bullish candle on the daily charts with healthy trading volumes. The stock has recouped most of its losses seen since March 3, with trading above all key moving averages (9, 21, 50, 100 and 200-day EMA).
GMR Airports Infrastructure was also in focus, climbing nearly 5 percent to Rs 41.35 and formed long bullish candle on the daily charts with making higher high higher low formation. The volumes remained strong for yet another session, with the stock trading above all key moving averages.
Indian Energy Exchange shares rose more than 4 percent to Rs 151.45 and formed bullish candlestick pattern on the daily charts, with making higher high higher low formation. The trading volume was robust and the stock has seen a breakout of downward sloping resistance trendline adjoining highs of August 17, 2022 and March 9, 2023.
Here's what Jigar S Patel of Anand Rathi Shares & Stock Brokers recommends investors should do with these stocks when the market resumes trading today:
In previous trading session, the said counter gave clean breakout by taking out its previous swing high of Rs 40. Additionally, from indicator point of view, daily RSI (relative strength index) has rebounded from 50 levels along with DMI (directional movement index) are showing bullish momentum thus confirming our bullish stance in the counter.
Moreover, the price action is comfortably above Alligator (refer chart) which further confirms our bullish view. One can buy in the range of Rs 41-42 with target of Rs 48 and stop-loss would Rs 38 on daily close basis.
After making the top of Rs 251 on April 7, 2022 the said counter is making a lower top lower bottom structure, resulting in a 52 percent cut in price. At the current juncture, it has made nice base around Rs 135-145 which is looking lucrative.
From indicator point of view, daily RSI has rebounded from 50 levels along with DMI are showing positive momentum thus confirming our bullish view on the counter.
Moreover, price action is comfortably above Alligator (refer chart) which further confirms our bullish view.
One can buy in the range of Rs 151-152 with upside target of Rs 171 and with a stop-loss of Rs 141.
Since last 3 months, the said counter has given whopping return of 41 percent. But one need to check that it is approaching near its resistance levels of Rs 875-880 where one can see profit booking.
Even DMI are not showing any clear sign, so one needs to avoid fresh buy in the said counter. If already bought then keep booking profits in the zone of Rs 865-880.
As of now no fresh buys.
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