The S&P BSE Sensex fell more than 300 points while the Nifty50 closed below 18200 levels.
Sectorally, buying was seen in auto and FMCG stocks while selling was visible in realty, metals, IT, and power stocks.
Stocks that were in focus include names like CreditAccess Grameen which rose more than 7% to hit a fresh 52-week high post results, Exide Industries which gained more than 5%, and Kaynes Technology which rose nearly 17% on Wednesday.
Here’s what Rohan Shah – Head of Technical Analysis at Stoxbox recommends investors should do with these stocks when the market resumes trading today:
Kaynes Technology India: Profit Taking
The young company registered a new all-time high level of 1190 on Wednesday. The stock showcases a healthy primary trend.
It witnessed volatility compression in the previous few trading sessions that bolstered the price action to break through a 12% lateral trading range on a buoyant volume note along with a breakaway gap in the previous trading session that indicates strength in the trend.The stock surged 17% intraday from its previous close and thus we anticipate some profit-taking before it can continue its upside.
We believe the zone of 1130-1095 as good entry levels considering a favorable risk to reward. We reckon a buy within the mentioned zone for the target of 1290 and a stop loss at 1050.
Exide Industries: Buy
The pattern analysis on the weekly chart shows that the price action has staged a bullish breakout from the flag pattern. The following pattern is a sign of trend continuation.
The stock continued to trend higher post breaking out on a stronger relative performance compared to Nifty50 which showcases strength.
On the daily timeframe, it witnessed a fresh bullish breakout from a relatively smaller basing pattern on the highest volume recorded for the year.
The spike in volume along with the breakaway away gap and a sharp uptick in its daily relative strength indicates room for further thrust in the price momentum. We anticipate the stock to surge 14% to the level of 234 with a stop loss at 191.
CreditAccess Grameen: Buy
CreditAccess marked a new all-time high at 1212 levels in the previous trading session. The move came at the back of the highest volume recorded during the year which bolstered the price to pierce through the immediate resistance at 1154 with a breakaway gap.
The gap-up move itself indicates strength in the price action. The pattern analysis on the weekly timeframe is to confirm the bullish breakout from the base on a weekly closing basis above 1154.
We anticipate the price action to take a brief breather following an extended move before it continues the trend. We reckon a buy on the stock for a potential 15% on the upside for the target of 1350 with a stop loss at 1093.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Leave a Reply