The S&P BSE Sensex plunged over 4,000 points and the Nifty50 closed below 22,000, recording its first single-session drop in over four years.
The Nifty Midcap and Nifty Smallcap indexes recorded their biggest ever decline in absolute terms, while the Nifty Bank index fell nearly 8 per cent.
Sector-wise, buying was witnessed in the FMCG sector, while selling was seen in the public sector, infrastructure and CPSE indices, which fell by over 15 per cent each.
Stocks in focus on Tuesday included Tata Technologies, which fell more than 2% to hit a new 52-week low, and Blue Star and Suzlon, which pared gains after hitting new 52-week highs on Tuesday. We have compiled a list of three stocks that have either hit new 52-week highs, hit new all-time highs or seen a surge in volume or price. We spoke to analysts on how we should look at these stocks in the coming trading days from an educational perspective. Below is what Pravesh Gaur, Senior Technical Analyst at Swastika Investmart, had to say:
Tata Technologies
The counter is in a downtrend and is continuously forming lower lows and lower highs on the daily chart. It is trading below a key moving average, thus distorting the overall structure.
On the upside, 1,150 is the immediate sensitive area, above which a rise to 1,200+ levels is expected in the short term, while Rs 950 is a psychological level and may act as an immediate demand zone in the near term.
Target – Avoid at current levels. Fresh purchases will commence above Rs 1,150.
Stop Loss – 950
Blue Star
The counter is in a strong bullish setup and has formed an ascending channel on the daily timeframe. This pattern is characterized by successive higher highs and lower lows, which indicates increasing buying pressure.
It has retested the previous breakout level of Rs 1,480. High volume during the breakout further strengthens the significance of this move. The overall structure of the counter is very favorable and it is trading above all the significant moving averages.
Momentum indicator RSI (Relative Strength Index) is also in a positive state and MACD (Moving Average Convergence Divergence) is supporting the current strength.
On the upside, 1,700 is the sensitive area, above which a rise to 1,900 levels is expected in the short term. On the downside, Rs 1,350 is the key support against any correction.
Target – 1900+
Stop Loss – 1350
Suzlon
On the daily chart, we saw the breakout of a triangle formation. After the breakout of an inverse head and shoulders, it retested the previous breakout levels around Rs 42.
The overall structure of the counter looks very favorable on the charts. However, profit taking was observed from higher levels. Moving averages and momentum indicators also support the trend.
On the upside, 52 is the immediate resistance area and above this, a rise towards the 56 level is expected in the short term.
On the downside, the cluster of moving averages forming a base around Rs 42 will act as key support.
Target – 56
Stop Loss – 42
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)
