Big Movers on D-St: What should investors do with SPARC, Delta Corp and M&M?

Indian market closed lower for the fifth consecutive day on Thursday following muted global cues. The S&P BSE Sensex plunged more than 1,000 points while the Nifty50 closed below 15,400 after it hit a fresh 52-week low.

Sectorally, selling pressure was seen in metals, 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.

Stocks that were in focus on Thursday included names like Sun Pharma Advanced Research Company (SPARC) which fell more than 8 per cent, Delta Corp which was down over 7 per cent, and M&M which lost nearly 2 per cent.

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

SPARC: Hold
On the daily and weekly charts, the stock is consistently facing selling pressure at higher levels. After a pullback rally from Rs 205 to Rs 220, the stock is now facing resistance near the 20-Day SMA and has corrected sharply.

The stock has fallen by more than 10 per cent so far in the week and formed a long bearish candle which is broadly negative.

We are of the view that as long as the stock is trading below the 20-Day SMA, the correction formation is likely to continue.

A close below this level could take the stock towards Rs 180-175. On the flip side, Rs 195 would be an immediate hurdle.

If the stock manages to break above the Rs 195 level, then a minor pullback rally is possible towards Rs 205-208.

Delta Corp: Rs 180 level is likely to lend support
The stock has fallen by over 50 per cent so far in the current quarter. On the daily and weekly charts, the stock is consistently forming a lower top formation.

The short-term texture of the stock is weak but it is trading in an oversold zone. We are of the view that as long as it is trading below Rs 180, the correction wave is likely to continue.

A close below the Rs 180 mark could take the stock towards Rs 157-150. On the flip side, a close above Rs 180 could result in a pullback move towards Rs 190-195.

M&M: Rs 1,000-980 zone likely to lend support
The stock has rallied by over 8 per cent so far in the month. Despite weak market conditions, the stock maintained its positive momentum.

The stock is currently hovering within the range of Rs 1,000-1,040 post the breakout. The texture of the stock suggests that there is a strong possibility of a fresh uptrend rally if it succeeds to trade above the 20-Day SMA.

For the traders, now Rs 1,000 and Rs 980 would be the key supports level to watch out for.

Above the same, it will move up to Rs 1,050-1,075. On the flip side, a close below Rs 980 could add to bearishness. Traders may prefer to exit from trading long positions.

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