Extending the losses for the fifth straight session, the Indian market slipped in the red as broader Nifty 50 slipped below 15,400 for the first time in the last one year. The Sensex declined by more than 1000 points as the 30-share index closed near 51,500. The over two per cent fall in the market came after the Fed hawkish stance on interest rate hike, as fears of similar rate hikes in coming meetings weighed on the sentiment of investors amid inflation.
“The early gains led by an in-line Fed policy was dampened as recessionary fears haunted global sentiments. A cut in growth projection and hints of continuation of aggressive policy in the next meeting instilled chances of a recession in the US economy,” said Vinod Nair, Head of Research at Geojit Financial Services.
Meanwhile, Nifty midcap and smallcap ended lower by 2.3% and 3.4% respectively. On sectoral front, Nifty Metal took the maximum beatings among sectoral indices with over five per cent fall as all other indices slipped into the red.
Even though the market slipped below its crucial level, some stocks came in focus on Thursday. These stocks were Vakrangee Limited, IFB Industries and Phoenix Mills. Vakrangee closed with nearly nine per cent gain, IFB Industries ended flat with positive bias and Phoenix Mills too ended flat.
Here is what Gaurav Ratnaparkhi, Head of Technical Research at Sharekhan by BNP Paribas, suggests investors should do with these stocks
The stock witnessed a sharp reversal on June 16, after having consistently fallen since mid-April. The bigger picture shows that the stock is still in a downtrend & what we are seeing is a short-term bounce. Nevertheless, there is room for the short-term bounce to continue further on the upside. The daily momentum indicator has triggered a bullish crossover from the oversold zone. Thus, the stock can head towards 30-31 in the next couple of weeks.
The stock has been witnessing consolidation for the last few weeks. In terms of the price patterns, it has formed a base triangle. Structurally, the pattern is still getting developed. 850-830 has acted as a strong support zone whereas the hurdle zone is placed at 930-945. Fresh breakout on the upside will be considered once the stock crosses 945 on the higher side.
The stock stumbled near the level of 1200 towards the end of May & had a short-term correction in the last couple of weeks. On the downside, it has tested the key weekly moving averages as well as the 200 DMA. These key moving averages are placed near the 1000 mark. So that’s a crucial support for the counter. Unless 1000 breaks on a closing basis, the stock is expected to trade in the broad range of 1000-1200