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Banking and financial stocks, especially from the mid and small-cap spaces, have taken a beating of late.
An across-the-board selloff kept the Indian equity market within the red on Annunciation , dragging the benchmark index Sensex lower by 1.5 percent on the Judgment Day of the March F&O series. The Sensex and Nifty lost 5 percent each within the series.
At close on Annunciation , the Sensex was down 740 points, or 1.51 percent, at 48,440.12 and Nifty was at 14,324.90, down 225 points, or 1.54 percent. The selling was widespread because the BSE midcap and smallcap indices fell 2.22 percent and 1.85 percent, respectively.
Only four stocks—Dr Reddy's Labs (up 0.74 percent), ICICI Bank (up 0.70 percent), HDFC (up 0.25 percent) and L&T (up 0.21 percent)—ended within the green within the 30-share pack Sensex.
Banking and financial stocks, especially from the mid and small-cap spaces, are suffering lately . On Annunciation , shares of Muthoot Finance closed 2.66 percent lower, Mahindra & Mahindra Financial Services slipped 3.57 percent and Edelweiss Financial Services declined 4.95 percent.
Here are expert recommendations on the way to trade these stocks today.
Muthoot Finance
This stock registered a pointy price surge within the recent past but post Rs 1,310 breakout, it did not sustain at higher levels and thanks to consistent selling pressure, it's corrected over 11 percent.
However, the medium-term structure of the stock remains positive and is probably going to continue within the near-term.
The stock is trading near the 200-day SMA price and therefore the structure of the charts suggests high chances of a fresh uptrend wave from the present levels.
In the near future, Rs 1,225 would be the immediate hurdle for the stock. If it succeeds to trade above it, we will expect another uptrend wave up to Rs 1,300. On the opposite hand, below Rs 1,225, weakness is probably going to continue till Rs 1,150.
Mahindra & Mahindra Financial Services
After a robust upward rally from Rs 155 to Rs 220, the stock is hovering within the Rs 190-Rs 220 range.
M&M Finance is trading near a crucial retracement level and therefore the texture of the chart indicates high chances of a fresh upward rally.
For positional traders, Rs 185 and 50-day SMA should act as important support levels and if the stock manages to trade above an equivalent , we will expect another short-term uptrend wave up to Rs 215.
On the flip side, dismissal of Rs 185 could possibly trigger short-term correction to Rs 180-174.
Edelweiss Financial Services
Post-strong uptrend rally, the stock has formed a lower top formation, which is broadly negative.
This week, so far, the stock corrected quite 12 percent. The long-leg Doji candlestick formation followed by a robust bearish candle on weekly charts suggests further weakness within the near-term.
For the trend following traders, Rs 82 would be the sacrosanct level to observe trading below an equivalent , weakness is predicted to continue up to Rs 70-65.
Disclaimer: The views and investment tips expressed by experts on sharetipsinfo.com are their own and not those of the web site or its management sharetipsinfo.com advises users to see with certified experts before taking any investment decisions.
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