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Sector wise, selling pressure was witnessed in metal, public sector, telecom, realty and IT stocks. The S&P BSE Midcap and Smallcap indices were down 2 per cent and 3 per cent, respectively.
The stocks in focus on Thursday included names like
,spark) which fell over 8 per cent, which was over 7 per cent, and M&M which fell nearly 2 per cent.
Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities, has given this advice on what investors should do with these stocks when the market starts trading today:
spark: hold
The stock continues to face selling pressure at higher levels on the Daily and Weekly charts. After a pullback rally from Rs 205 to Rs 220, the stock is now facing resistance near the 20-day SMA and has corrected bullishly.
The stock is down more than 10 percent so far in the week and has formed a long bearish candle that is largely negative. We are of the view that the correction is likely to continue as long as the stock is trading below the 20-day SMA.
If the closes below this level, the stock can go up to Rs 180-175. On the other hand, Rs 195 will be an immediate hurdle.
If the stock manages to break the Rs 195 level, a slight pullback rally towards Rs 205-208 is possible.
Delta Corp: Likely to support Rs 180 level
The stock has lost more than 50 per cent so far in the current quarter. The stock continues to form lower top formations on the daily and weekly charts.
The short term texture of the stock is weak but it is trading in the oversold zone. We believe that the correction wave is likely to continue as long as it is trading below Rs 180.
A close below Rs 180 can take the stock to Rs 157-150. On the other hand, a close above Rs 180 could lead to a pullback towards Rs 190-195.
M&M: Likely to support 1,000-980 zone
The stock has gained more than 8 per cent so far this month. The stock maintained its positive momentum despite weak market conditions.
After the breakout, the stock currently remains in the range of Rs 1,000-1,040. The stock’s texture suggests that a new uptrend rally is highly likely if it manages to trade above the 20-day SMA.
For traders, now Rs 1,000 and Rs 980 will be key support levels to be looked at.
Above this it will go up to Rs 1,050-1,075. On the other hand, a price below Rs 980 can extend the bearish further. Traders can choose to exit long position trading.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)
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