The market started off the week on a negative note as the benchmark indices lost more than six-tenth of a percent due to selling pressure in technology, select banking and financial services and FMCG stocks. Weak global cues also weighed on the market.
Overall, the market has been range-bound after showing a smart recovery over the last one month. The BSE Sensex fell 483 points to 58,965, while the Nifty50 declined 109 points to 17,675.
But the broader markets showed outperformance compared to benchmarks with positive advance-to-decline ratio. The Nifty Midcap 100 index gained six-tenth of a percent and Smallcap 100 index closed flat. About 1,077 shares advanced against 880 declining shares on the NSE.
Stocks that were in action include Ambuja Cements, which was the biggest gainer in the futures and options segment, rising 6.77 percent to Rs 360; Godfrey Phillip which saw a big move of 13.5 percent after a long time and closed at Rs 1,234.7.
Gujarat Ambuja Exports have also seen a big spike on Monday after a long period of time, rising nearly 12 percent to end at a record closing high of Rs 292.45, while Adani Total Gas also ended at fresh closing high of Rs 2,665, up 10 percent.
Here's what Malay Thakkar of GEPL Capital recommends investors should do with these stocks when the market resumes trading today:
In the recent correction, Ambuja Cements took a support and halted the down move at its 50 percent Fibonacci retracement level (Rs 136-442 rally).
After taking support, the stock has seen good price volume action and in the current week the stock managed to recapture above its 20-week SMA (Rs 349) with good volume buildup.
The RSI (relative strength index) indicator on weekly charts has also started moving higher after forming a bullish hinge near the 40 mark.
We advise traders and investors to continue holding the stock and expect upside towards Rs 385 followed by Rs 410 levels. The downside support for the stock is placed at Rs 340 level.
Godfrey Philips has given an inverse head and shoulder breakout with sharp increase in volumes indicating strength in the counter.
The stock formed a long bullish candle and gave a close at its 3-month high level.
The RSI has broken above the 70 mark and is confirming the breakout and strong momentum in the underlying.
Traders and investors can continue holding the stock and expect immediate upside towards Rs 1,320 followed by Rs 1,380 levels. Downside support for the stock is now placed in Rs 1,170-1,180 zone.
On long term charts, Adani Total Gas is moving in a strong uptrend with higher highs and higher lows formation. The Bollinger bands are expanding and the stock has broken above the upper Bollinger bands indicating possibility of a trending move.
Traders and investors should continue holding the stock for upside towards Rs 2,850 followed by Rs 3,050 levels. Rs 2,350-2,400 will act as an important support zone on the downside.
Gujarat Ambuja Exports is moving in a strong uptrend since March 2020 with higher highs and lows.
Recently the stock has broken out of 4-week of consolidation with pickup in volumes indicating strength in the breakout.
The RSI indicator on all timeframes i.e Daily, Weekly and Monthly is above the 70 mark which suggests strong momentum in the underlying.
Going ahead we expect the stock to move higher towards Rs 310 followed by Rs 330 levels. A stop-loss of Rs 275 should be maintained on the downside for this setup.
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