The selling pressure continued for yet another session, dragging the benchmark indices down by athird of a percent on June 1. Banking & financial services sector remained a key driver for downtrend in the market.
The BSE Sensex fell 194 points to 62,429, and the Nifty50 dropped 47 points to 18,488, while the broader markets performed better, with the Nifty Midcap and Smallcap 100 indices declining 0.15 percent and 1 percent respectively as the market breadth was positive.
Bank Nifty corrected more than 300 points for second consecutive session, to close below 44,000 mark, at 43,790.
Stocks that outperformed broader markets included RBL Bank, which rallied nearly 4 percent to Rs 168.50, the highest closing level since February 10, and formed long bullish candlestick pattern on the daily charts, with above average volumes. The stock has gained momentum, seems to be after breaking out downward sloping resistance trendline on May 30.
Redington shares jumped 5.6 percent to Rs 184, the highest closing level since February 6 and formed strong bullish candlestick pattern on the daily scale, with above average volumes. The stock has seen a breakout of horizontal resistance trendline adjoining multiple touchpoints.
Apollo Hospitals Enterprises climbed over 4 percent to Rs 4,814, the highest closing level in last six months. The stock has formed robust bullish candlestick pattern on the daily timeframe, with significantly higher volumes for yet another session.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
The counter is trading into a rising channel pattern after reversal from the support zone and forming the higher lows series continuously on the daily scale. The strong bullish momentum suggests that the counter is likely to maintain bullish continuation chart formation in the coming horizon.
For traders, Rs 162 would act as an important support zone, while Rs 180 could be the key resistance area for the short-term traders. However, below Rs 162 level the uptrend would be vulnerable.
The counter witnessed short-term correction from the higher levels and moved within a confined range. However, the counter has formed higher bottom series and it has given the range breakout. Therefore, the closing above the resistance line indicates further bullish momentum to continue from the current levels.
For the trend following traders, Rs 178 would act as support level. Above the same, it could move up to Rs 196-199 levels. On the flip side, below Rs 178, traders may prefer to exit the position as it could slide further till Rs 175 zone.
The stock is trading in an Ascending Triangle chart pattern on the weekly scale. Moreover, the strong up move on the daily chart suggests that the stock is likely to breakout for further bullish momentum from the current levels.
For positional traders, Rs 4,650 would be the trend decider level. Trading above the same uptrend formation will continue till Rs 5,150. However, if it closes below Rs 4,650, traders may prefer to exit from trading long positions.
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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