Sensex rebounds but is still down 1K points since Nov 7; 10 stocks which slipped up to 25%

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26 Aug, 2025 12:21

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The S&P BSE Sensex which bounced back nearly 200 points is still down by about 1000 points after hitting a record high of 33,865.95 recorded earlier in the month on November 7. The index broke below its crucial support placed at 33,000.

Analysts were expecting some sort of bounce back which has come considering the fact benchmark indices were trading near crucial support levels. The Nifty50 which rose to a record high of 10,490 witnessed buying interest near its crucial support of 10,100.

The market could be nearing a top and investors should use bounce backs to either book profits especially in the small and midcap space. Technical chartists advise investors to book profits in at least 50 percent if their positions.

“Based on our long-term trend studies there is a higher chance of market making an intermediate top in the zone of 10400 – 10600 as we have been highlighting in these columns for quite a while in the past,” Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.

“Hence, we will not be surprised if 10490 is going to be the multi-month top. Because of this factor, the ideal strategy can be to prune down the existing portfolio in rallies to some extent and remain in cash,” he said.

Mohammad further added that in the small and midcap space which is likely to get hid hardly when the market falls. Hence we were quite clear some time back and advised to exit 50% from this space.

Investors will be better off booking profits in stocks which have already rallied and trading at unreasonable valuations as some stocks display signs of froth.

The ideal strategy should be to remain heavily invested in largecaps (majority) and diversify a portfolio with some quality small and midcap stocks.

“We would advice investors to buy those companies who have sound management and trading at a reasonable valuation. Ideally, 60 percent of the capital should be invested in Large-cap stock and rest 40 percent can be divided into quality Midcap and Smallcap,” Viral Chheda, Technical Analyst, SSJ Finance & Securities told Moneycontrol

“We would advise exiting from the stocks which are trading at unreasonable valuation and stock bought on market rumors,” he said.

So what is rocking D-Street boat? Weak global cues, along with shaky macros are to be blamed for the volatility witnessed on D-Street.

The rise in crude oil prices, delay in US tax reforms, high inflation, fading expectations of a rate cut and rising concerns over govt. meeting its fiscal deficit target of 3.2 percent are some factors which are weighing on sentiments.

“The fall in Japanese market due weakness in dollar created momentum of selling pressure in Asian equity market on Wednesday which is still continued after then rise in Crude Oil prices, delay in Tax reform in the US, political tension in the Middle East and weaker than expected economic data from China were key global factors that led turmoil in equity market,” Santosh Meena, Sr Research Analyst, Swastika Investmart told Moneycontrol.

“On the domestic front, there are some worries on fiscal deficit after GST rates have been slashed on most of the products and services. But, technically, we are trading near the sacrosanct mark of 50-DMA of 10120 where any small recovery in global market may lead a powerful bounce-back,” he said.

The S&P BSE Sensex tumbled more than 1000 points in this corrective phase but most of the small cap and Midcap stocks have corrected significantly where some of them have fallen more than 25%.

From the start of November, we have seen a little over 3 percent correction in benchmark indices followed by around 3.5 percent in midcap and around 4.5 percent in smallcap, but analysts do not foresee a sustained downtrend in the market.

Stocks which remained on investors’ sell radar since November 7 include names like Reliance Communications, MMTC, Marksans Pharma, HFCL, Ashoka Buildcon, GNFC, GSFC, Granules India, Mahanagar Gas, and SCI etc. among others which fell up to 25 percent in the same period.

What should investors do?

Stocks which have already seen a steep selloff should be traded with caution. Only a few names from the list can categorized under buy on dips category.

In the short term, Nifty has support around 10000-9850 and resistance is at 10350-10450. From the medium-term perspective, Nifty has strong supports around 9650-9700, suggest experts.

“From the list of stocks which have fallen up to 25 percent, we are positive on GNFC, Mahanagar Gas and Aurobindo Pharma and recent correction offers a good buying opportunity,” said Chheda of SSJ Finance & Securities.

“Apart from this, there are three more stocks which are either overvalued or run up on rumors, so we suggest our client to stay away from these stocks,” he said.

Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

Reliance Communication: Avoid

Nothing is going right for this counter both on the Fundamental front as well as on technical charts. This counter is hitting new lifetime lows as it failed to service its debt.

Hence, it should be completely avoided and as its face value is Rs.5 there is more room for this counter to depreciate further.

HFCL: BUY on declines

This counter may be coming out of obscurity as it was associated with all wrong reasons in the past and hence, was out of the radar of right investors for quite a long period of time.

But, during this period if fundamentals of the company are improving and the stock is out of favor for multiple years then it lead suppression of value which needs to be unlocked at some point in future.

On technical charts, as it has registered a breakout above the multi-year downsloping trendline with multiple touch points it can be bought into by the patient investors for decent gains.

Marksans Pharma: BUY on dips towards Rs37

Almost for 15 months, this counter is in a consolidation phase in the zone of 58 – 36. Hence, any correction towards 37 can be a buying opportunity with a stop below 35 on a closing basis.

Disclaimer: The above list is for reference and not a recommendation to either buy or sell. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.