The market failed to sustain recent bounce back and corrected for second day in a row due to correction in global counterparts and rising securities transaction tax (STT) on futures & options trades, on March 24. The BSE Sensex declined nearly 400 points to close at 57,527 in the previous session.
The Nifty50 dropped more than 130 points to 16,945 and saw bearish candlestick pattern formation on the daily charts, with making lower top lower bottom.
The broader markets also followed similar trend and underperformed benchmarks. The Nifty Midcap 100 index fell 1.2 percent and Smallcap 100 index declined 1.7 percent on weak breadth.
Stocks that were in action and performed better in the falling markets included Cyient which rallied 6 percent to Rs 1,001.20, the highest closing level since February 2 last year and formed robust bullish candle on the daily scale with strong volumes.
Great Eastern Shipping Company shares rose nearly 4 percent to Rs 624 and formed long bullish candlestick pattern on the daily timeframe with above average volumes.
Aurobindo Pharma was also in focus, gaining 3 percent at Rs 500, the highest closing level since November 9 last year and formed long bullish candle on the daily charts with above average volumes. The stock continued its uptrend for third straight session, especially after forming Bullish Engulfing kind of pattern on March 22, with rising volumes.
Here's what Rajesh Palviya of Axis Securities recommends investors should do with these stocks when the market resumes trading today:
On the daily and weekly time frame, the stock is in uptrend forming a series of higher tops and bottoms indicating bullish sentiments. The stock has recaptured its 20-day SMA (simple moving average - Rs 953) and rebounded sharply which remains a crucial support zone.
The stock is also well placed above 50, 100 and 200 days SMA and these averages are inching up along with rising prices which reconfirms bullish trend.
Huge volumes on price rise shows increased participation on rally. The daily, weekly and monthly strength indicator RSI (relative strength index) is in positive terrain which signals rising strength across all the time frames. The daily "band Bollinger" buy signals indicates increased momentum.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 1,050-1,100, with downside support zone of Rs 925-915 levels.
Since the past couple of months, the stock has managed to hold its 200-day SMA (Rs 556) support zone on a closing which remains a positive bias. Huge volume spurt near the support zone signals increased participation.
On the daily chart, the stock has witnessed four months "down-sloping trendline" breakout at Rs 606 levels on a closing basis which stands as a positive sign. The daily and weekly strength indicator RSI is in positive terrain which signals rising strength.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 670-700, with downside support zone of Rs 600-550 levels.
With current week's strong up move (4.7 percent) the stock has decisively broken out its past five months "multiple resistance" zone of Rs 485-490 levels on a closing basis which indicate a short term trend reversal.
On the daily and weekly time frame the stock has witnessed trend reversal as it has confirmed a higher top and bottom formation. The stock is well placed above its 20, 50, 100 and 200 days SMA which supports bullish sentiments.
The daily, weekly and monthly strength indicator RSI is in positive terrain which signals rising strength across all the time frames.
Investors should buy, hold and accumulate this stock with an expected upside of Rs 530-560, with downside support zone of Rs 490-480 levels.
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