Indian market closed in the red for the fourth day in a row on March 17 breaking below crucial support levels. The S&P BSE Sensex closed below 50,000 while the Nifty50 ended below 14,800 levels.
Benchmark indices witnessed a cut of over 1 percent while the bigger damage was seen in the broader market space. The S&P BSE Mid and Small-cap indices tanked over 2 percent each.
Among individual stocks, ONGC fell 5 percent and was also the top Nifty loser. Vaibhav Global fell nearly 12 percent while SBI Card closed lower by over 4 percent.
Here's what Ruchit Jain, Senior Analyst- Technical and Derivatives, Angel Broking, recommends investors to do with these stocks when the market resumes trading on March 18:
The PSU stocks have witnessed good buying interest in the last few sessions and this particular stock has seen a good price up move in the recent past. However, prices have resisted around its ‘weekly 200 SMA’ and have now breached its ‘20 DEMA’.
Thus, we could see some profit-booking in the near term. Hence, traders with long positions are advised to book profits and take profits off the table. The support for the stock is placed around Rs 105 while resistance is seen around Rs 115 Rs 118.
The stock has seen a stupendous rally over the last year, thus giving multifold returns to investors. However, the RSI oscillator on the weekly as well as the monthly chart is trading above 93 which is a highly overbought zone.
From such levels, there is usually a high probability of a correction and hence, one should prefer to lighten up longs at current levels. The near-term supports for the stock are placed around Rs 3,750, followed by Rs 3,500.
On the back of a block deal, we have seen some price correction in the stock. However, on the charts, this just seems to be a correction within an uptrend.
The near-term support for the stock is placed around Rs 945 and we could see the stock resuming its uptrend once this correction is over.
Hence, it is advisable to continue to hold the stock from a medium-to-long-term perspective and use declines towards support as a buying opportunity.
Disclaimer: Ruchit Jain has invested in SBI Cards in his personal account. The views and investment tips expressed by 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.