After a brief two-day relief rally, the market plummeted nearly one and half per cent amid volatility on Wednesday. Benchmarks Nifty50 and Sensex ended lower by 1.44% and 1.35% respectively, sourcing weakness from the global market.
The global traded with weakness ahead if US Federal Reserve Chair Jerome Powell is scheduled a two-day testimony to Congress later on Wednesday.
Following the benchmarks, Nifty midcap and small cap declined by 1.6% and 1.4% respectively.
Among sectoral indices, Nifty metal was worst hit with 4.87% cut as all other Nifty sectoral indices ended deep in the red.
Besides, all the BSE sectoral indices ended lower, with metal tumbling 4.96 per cent, followed by basic materials (2.67 per cent), realty (2.24 per cent), consumer discretionary goods & services (1.11 per cent), power (2.11 per cent) and utilities (2.08 per cent).
“The short-lived pull-back rally displays the level of uncertainty in today’s market. The weakness of the global market due to quantitative tightening pulled the market down. The US Fed Chair’s testimony later in the day will be keenly watched for clues about the central banks’ future dot-plot,” Vinod Nair, Head of Research at Geojit Financial Services, had said in post market commentary on Wednesday.
Meanwhile, certain stocks came in focus on Wednesday. These stocks were Crisil, Hindustan Copper and Sequent. Crisil closed with over six per cent gains, Hindustan Copper dropped more than seven per cent and Sequent Scientific gained nearly eight per cent on Wednesday.
Here is what Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, says one should do with these stocks.
CRISIL LTD: The counter is moving in the upsloping channel formation in a longer time frame. On the daily chart, it took support from their previous breakout levels around Rs. 3000 which is also placed at 200-SMA. If it manages to sustain above Rs 3100, we can expect bullish momentum to pick up towards 3500 level.
HINDUSTAN COPPER: The counter has witnessed a breakdown of descending triangle pattern formation on the longer timeframe charts. The overall structure is distorted as it trades below the 100, 200-Days SMA moving averages, and the momentum indicators are also negatively poised. On the downside, Rs 72 is the strong support level where we can expect a bounce-back while on the upside, the level of Rs 88 is likely to act as an immediate hurdle.
Sequent: The counter is in a severe downtrend however it is witnessing a smart pullback after a vertical fall as 90-80 is a critical demand zone because the last bull rally was started in the same area. On the upside, 110-120 will act as a critical resistance zone; above this, we can expect any change in the overall trend.
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
Read More: Buy, Sell or Hold: What should investors do with Crisil, Hindustan Copper and
