Extending the weakness, the Indian market fell for the second straight day on Thursday. Benchmarks closed the day with marginal reductions as Nifty50 closed near 15,800 and the Sensex settled around 53,000.
In the broader market, Nifty midcap fell nearly 0.8% and Nifty smallcap fell 0.5% as India VIX closed nearly 22 points lower.
From a sector perspective, nearly all Nifty indices slipped into the red with some buying interest seen in some banking and financial stocks. Nifty Metal, Auto and IT were the worst sector indices.
“Shaking off a weak global market lead, national indices recouped their losses, supported by banking and energy stocks. . The sale of FII close to exhaustion has reassured the nervous Indian market,” said Vinod Nair, head of research at Geojit Financial Services.
Meanwhile, some stocks received particular attention on Thursday. These stocks were Delta Corp, Dhani Services and Amber Enterprises. Shares of Delta Corp fell 8%, Dhani Services gained 5% and Amber Enterprises ended more than 4% off Thursday.
Here’s what Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan of BNP Paribas suggests investors do with the following stocks.
After a steep decline since early April, the stock recently tried to recover. However, it turned out to be a short-term bounce and failed to develop into a larger upward pattern. After the pullback, the stock started the next leg down on June 30. It should break the recent low of 162 below which the stock may continue to slide down to 150.
2. Dhanis Services
This is a considerably downed counter, which is currently experiencing a rebound. However, recent history shows that short-term bounces in this meter tend to run out of steam near key DMAs. The same is expected this time around as well. The stock therefore has limited upside potential with a short-term rise to 40 – 44
3. Amber Enterprises
The stock has seen a steep decline over the past two months. If he tried a rebound in recent sessions, he is not out of the woods yet. 2400 is a key resistance for the stock. Unless this is breached at the close, the stock should revisit the recent low of 2040.