After a day of rebound, the market again slipped into the bear grip with the benchmark indices losing half a percent on November 24. Heavy selling by FIIs, and correction in FMCG, IT, auto and select pharma stocks dampened the sentiment.
The Nifty50 fell 88 points to 17,415 and now experts feel if the index breaks the crucial 20-week SMA - estimated at 17,200 - in the coming days, then there could be chances that it may fall up to 17,000 mark.
The BSE Sensex lost over 300 points to 58,341, while there was a mixed trend in the broader markets with the Nifty Midcap 100 index declining 0.4 percent and the Nifty Smallcap 100 index rising 0.63 percent.
Stocks that were in focus include Zee Entertainment Enterprises which rallied 7.04 percent to close at Rs 334.40, and Adani Ports which surged 4.63 percent to Rs 763.05. Both the stocks were top gainers in the futures and options segment.
ONGC was the third biggest gainer in the F&O space, rising 4.60 percent to Rs 153.45, while Laurus Labs closed with 2.93 percent gains at Rs 502.10.
Here's what Gaurav Sharma of Globe Capital Markets, recommends investors should do with these stocks when the market resumes trading today.
It is on the verge of a breakout from a congestion range of Rs 290-335 in which it was consolidating from over two months. After the breakout, the stock has the potential to scale up to Rs 370-380 in the weeks to come.
Considering this, the existing shareholders should hold on their positions and potential buyers must wait for the breakout to initiate fresh longs.
It moved steeply higher on November 24 with volume support. This indicates carryover of long positions, which is a positive development. It is looking quite attractive on short as well as medium term charts.
Sustenance above Rs 156/158 levels will be the key for further up move that can take towards Rs 172 levels which is the next resistance level.
It has performed exceptionally well in the past one year, rallying from Rs 100 to Rs 700 levels during that period. Recently, some profit-taking was witnessed due to which the stock slipped till Rs 445.
Considering its over-performance, this decline seems a good buying opportunity for a medium-term perspective where one can expect the stock retesting its highest point at Rs 700-plus.
It is trading in a broad range of Rs 650 to Rs 900 from the past six months. The zig-zag move is likely to continue till that range is crossed.
Recently, some buying interest was witnessed with an exceptional rise in volume. This is a very positive sign, indicating that the upward move will continue till Rs 800-820 levels.
Considering a rangebound chart structure, this is an opportunity for swing traders to buy at dips and sell near resistances.
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