Indian markets closed in the red for the fourth consecutive day in a row on Tuesday. The S&P BSE Sensex and Nifty50 hit their 7-week low.
Let’s look at the final tally on D-Street on Tuesday – the S&P BSE Sensex was down 300 points to 37,734 while the Nifty50 fell 96 points to close at 11,153.
Sectorally, the action was seen in IT space. Selling pressure was visible in Oil & Gas, Capital Goods, Realty, Consumer Discretionary, etc. among others.
GMM Pfaudler was locked in a lower circuit of 10 percent, Quess Corp fell over 4 percent, and ZEE Entertainment was down 6.4 percent.
We have collated views of experts on what investors should do when the market resumes trading on Wednesday, 23 September:
Expert: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
GMM Pfaulder: Strong support around Rs 4000 may not hold
If we go purely by technical charts then this counter has undergone a multi-week consolidation around Rs 3950 levels before unleashing a sporadic upswing from the lows of Rs 4000 to Rs 6900 levels in just two weeks.
Hence, in normal conditions, the chances of this level holding up will be much higher. However, considering the fact that this company has fixed OFS price at Rs 3500 levels, the strong support around Rs 4000 may not hold.
Interestingly, the next support on charts below Rs 3950 is placed around Rs 3450 levels. Therefore, on bigger correction, it could become a buy around Rs 3500 levels by default.
Considering the strong interest and long-term uptrend of this counter, initial target in the zone of Rs 4800-5200 can be expected over a period of time assuming it will bottom out around Rs 3500 levels. If someone is already holding then they should exit at the earliest opportunity.
Quess Corp: Short & long-term trend is tilting in favour of bears
Alhough this counter is trading close to its short-term support of Rs 360 levels, trend on medium to longer-term charts are tilting in favour of bears. Hence, if it consistently trades below Rs 361 levels it can undergo a bigger correction.
Therefore, it looks prudent not only to avoid fresh buying but also to consider an exit at current levels.
In case if the investor wants to hold then he is advised to place a stop below Rs 360 on a closing basis and on stability around this support could lead to a pullback toward Rs 400.
ZEE Entertainment: Buy on dips
This counter appears to be trading around its 200-Day simple moving (SMA) average post Tuesday's correction. Hence, going forward it remains critical for this counter to sustain above Rs 193 levels and a breach of this on a closing basis can attract sharp correction with initial targets placed in the zone of Rs 180 – 170 levels.
For the time being, investors can hold with a stop below Rs 193 on a closing basis. In case if it stabilises and manages a bounce then the ideal level to exit will be in the zone of Rs 212 – 220.
However, considering recent sharp rallies from lower levels in this counter any bigger correction looks like an investment opportunity on stability around support levels either at Rs 170 or around Rs 155.
Disclaimer: 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.
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