Indian market closed with losses of over 1 per cent on Friday and over 4 per cent for the week ended May 6, weighed down by weak global cues.
Sectorally, selling pressure was seen in realty, metals, consumer durable, and IT stocks while some buying was seen in power and utilities.
Stocks that were in focus include names like Info Edge which was down nearly 6 per cent, Rakesh Jhunjhunwala-owned Nazara Technologies that fell more than 5 per cent to touch a fresh 52-week low, and Cholamandalam Investment and Finance closed with losses of more than 11 per cent on Friday.
Here’s what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:
Info Edge: Avoid
The counter has witnessed a breakdown from the Head & Shoulder pattern formation on long-term chart. The overall structure looks destructed as it trades below all its moving averages.
It is having a demand level of around Rs 3,500 on the downside. While on the upside, Rs 4,100 is an immediate resistance area; above this, we can expect a run-up towards Rs 4,500+ levels in the near term.
Nazara Technologies: Avoid
The counter has traveled in the down-sloping channel pattern and on Friday the stock broke the all-time low at around Rs 1,430.
On the downside, Rs 1,300 maybe act as a support level; if it will break this level then, Rs 1,100 will be the next support.
While on the upside Rs 1,430 will act as a resistance level above this, we can expect a run-up towards Rs 1,600+ level.
Cholamandalam Investment and Finance: Sell
The counter has witnessed a breakdown from rising wedges pattern formation on the daily chart. The structure of the counter turned bearish where Rs 600 level is the important support level.
If the stock slips below Rs 600, then we can expect Rs. 560 level in the near term. On the upside, Rs 700 is an immediate resistance level.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)