The market largely continued its consolidation and rangebound trade for the third straight session on March 28, as traders may be looking cautious ahead of monthly expiry of futures and options contracts scheduled on March 29.
The BSE Sensex fell 40 points to 57,614, while the Nifty50 declined 34 points to 16,952, and formed bearish candlestick pattern on the daily charts with taking strong support at 16,900 mark for third day in a row.
Experts largely expect the trading range of 16,900-17,100, which we have seen in last few sessions, to break on either side in coming sessions, along with volatility.
Bears retained their control over broader markets due to consistently negative breadth. The Nifty Midcap 100 and Smallcap 100 indices were down 0.35 percent and 0.91 percent.
Stocks that performed better than the broader markets included Manappuram Finance which climbed nearly 4 percent to Rs 119 and formed Bullish Engulfing kind of pattern on the daily timeframe, with above average volumes and making higher top higher bottom. The stock traded above all key moving averages (21, 50, 100 and 200-day EMA - exponential moving average).
Torrent Power shares rallied 5 percent to Rs 511, after downtrend from Rs 550 on March 17 till Rs 487 on March 27. The stock has formed robust bullish candlestick pattern on the daily scale with above average volumes. In a single day rally, it clawed back above 50/100/200-day EMAs.
Emami was also in focus, rising 4.5 percent to Rs 365 after consolidation in last 4-5 trading sessions. The stock has seen formation of bullish candle with strong volumes and recouped all its previous day's losses, after taking support at Rs 340.
Here's what Vaishali Parekh of Prabhudas Lilladher recommends investors should do with these stocks when the market resumes trading today:
The stock has witnessed a short correction from Rs 550 levels to Rs 484 zone and indicated a bullish positive candle moving past the significant 50EMA (exponential moving average - Rs 505) and 200EMA (Rs 503) moving averages to improve the bias and anticipate for further rise in the coming days.
The RSI (relative strength index) has indicated a trend reversal with sharp V shaped turn and has improved the sentiment with strength indicated. We expect further upside move till Rs 550 zone with a stop-loss near Rs 485.
The stock after a decent erosion witnessed has shown signs of bottoming out near Rs 340 zone and indicated some improvement in the sentiment. The bias is accompanied with decent volume participation to anticipate for upward move from here on.
The RSI indicator has shown a reversal from the highly oversold zone to signal a buy and technically, has much upside potential from here on.
We suggest a buy with upside target expected till Rs 400-405 levels, with a stop-loss near Rs 340 zone.
The stock has overall indicated an uptrend with series of short correction and recovering to continue with the uptrend. We anticipate the stock to retest the previous peak zone of Rs 125.
The RSI has indicated strength to carry on with the momentum still further ahead. The near term support should be maintained near Rs 112 zone.
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