Big Movers on D-St: What should investors do with SPARC, Sheela Foam and Manappuram Finance?

Indian market snapped a 2-day winning streak and closed in the red on Thursday. The S&P BSE Sensex fell nearly 300 points while Nifty50 closed below 17100 levels.

Sectorally, buying was seen in power, utilities, telecom and FMCG while selling was seen in realty, banks, IT and public sector.

Stocks that were in focus include names like Sun Pharma Advanced Research which rose nearly 12%, Sheela Foam which fell more than 3% and Manappuram Finance which rose nearly 2% on Thursday.

Here's what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd recommends investors should do with these stocks when the market resumes trading today:

SPARC: Buy
After a long correction, eventually, the stock took support near 162 and bounced back sharply. On Thursday, it rallied over 10% and also formed a long bullish candle on the daily charts which is broadly positive.

However, the medium-term texture of the stock is still weak. Technically, as long as the stock is trading above 174 levels, the pullback formation is likely to continue.

Above this, the momentum could take the stock towards 185 levels. Further upside may also continue which could lift the stock towards 190 or 50-Day SMA (Simple Moving Average).

On the flip side, a fresh selloff is possible only after the dismissal of 174. Below the same, the stock could retest the level of 168-165.

Sheela Foam: Avoid
In this quarter so far, the stock has corrected by over 18%. On the daily and weekly charts, the stock is consistently facing selling pressure at higher levels.

Currently, it is forming lower top formation and is comfortably trading below the 20-Day SMA (Simple Moving Average) which is largely negative.

The short-term texture of the stock is weak but in an oversold zone. For the trend-following traders, 1115 would be the key resistance zone.

Below the same, the stock could slip till 1045-1025. On the other side, above 1070, one minor pullback rally is possible till 1100.

Manappuram Finance: Buy
In this month so far, the stock has rallied by over 18%. Despite the volatile market sentiment, the stock held positive momentum. On daily and intraday time frames, the stock is consistently forming higher high and higher low series formations and trades above 20 and 50-Day SMA (Simple Moving Average).

Technically, the short-term formation is bullish but the intraday texture is mildly overbought. Hence, for the bulls, buying on correction and selling on rallies would be the ideal strategy.

For traders, 118-114 would act as an important support zone while 124-126 could be the key resistance area for short-term traders. However, below 111, uptrends would be vulnerable.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)