Indian market snapped a 4-day winning streak on Thursday tracking muted global cues. The S&P BSE Sensex fell by about 150 points while the Nifty50 failed to hold on to 11900 levels.
Let’s look at the final tally on D-Street on Thursday — the S&P BSE Sensex closed 148 points lower at 40,558 while the Nifty50 was down 41 points to close at 11896.
Sectorally, the action was seen in telecom, power, capital goods, and oil & gas while profit-taking was seen in IT, banks, healthcare, and finance.
Stocks like Sagar Cement rallied by about 16 percent, Chennai Petro was locked in upper circuit at 20 percent, and Petronet LNG rose nearly 5 percent were some of the stocks that were in focus.
We have collated views of experts on what investors should do when the market resumes trading on Friday, 23 October:
Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
Sagar Cement: For swing traders, Rs 715 should be the trend decider level
The stock rallied over 15 percent on October 22. The stock has been soaring rapidly over the last three weeks, rallying from Rs.] 500 to Rs 800 within the period.
That rally was price dominating along with incremental volume activity. On daily and weekly charts, the stock has formed a robust breakout continuation pattern which suggests uptrend momentum is likely to persist in the near future.
However, on the short-term time frame, the momentum indicators indicate that the stock is in an overbought zone and the uptrend would be vulnerable if the price close below the Rs 715 mark.
For swing traders, Rs 715 should be the trend decider level. We expect the uptrend to continue up to Rs 900-945 if it manages to hold onto Rs 715. However, a close below Rs 715, traders may prefer to exit out from trading long positions.
Chennai Petro: The stock is heading towards 200-day SMA.
From the last two days, the stock has been rising rapidly. On October 22, the stock opened with a gap and despite tepid market conditions, it maintained strong momentum throughout the day.
In this week alone, the stock has rallied nearly 30 percent and after a long time, it managed to trade above the Rs 76 mark. However, the medium-term chart formation is still on the negative side and that would create doubt in the traders' minds.
Currently, the stock is heading towards 200-day SMA. The short term texture of the stock is positive, but Rs 88 should act as important resistance for the Chennai Petro. On the flip side, closed below Rs 75 may trigger further weakness up to Rs 68 support level.
Petronet LNG: For the trend following traders, 222 should be the key support level
After a sharp price correction from Rs 280 to Rs 210, the stock was hovering around the range of Rs 210 to Rs 225. However, on daily charts, the stock has formed a strong double bottom formation and on the intraday chart, it is consistently making higher bottom series pattern which is broadly positive for Petronet.
Another important thing is that the stock is trading well above medium-term averages along with strong positive SAR series, which suggests high chances further uptrend is not ruled out.
For the trend following traders, Rs 222 should be the key support level. And, if the stock manages to trade above the same, we can expect a continuation of uptrend wave up to Rs 250-258.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.