So far this week, mid and small-cap indices have fallen by as much as 9 percent compared to a 2 percent decline in the bigger indices
When the market was on an upswing, mid-cap and small-cap indices had outpaced the Sensex and Nifty by a mile. A similar trend is playing out on the way down as well. So far this week, the mid and small-cap indices have fallen by as much as 9 percent, compared to a 2 percent decline in the bigger indices.
Analysts expect this divergence to continue as they see panic-stricken investors flocking to the safety of large-caps. Besides being more liquid, large-caps also appear attractively valued compared to the second-line stocks that have suddenly fallen out of favour.
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Deven Mehata, Equity Research Analyst, Choice Broking
MarutiBuy: Rs 11,400 | Stop Loss: Rs 11,000 | Target: Rs 12,300
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The stock is trading very close to its all-time high of 11,730 at 11,400 levels. The critical support level at 11,000, closely aligned with the 50-day Exponential Moving Average (EMA), signifies historical buying interest and provides a foundation for the stock's price stability. Crucially, Maruti is trading above all significant moving averages, emphasising its underlying strength and positive sentiment.
On the higher side, once the stock surpasses 11,730 resistance, it can move towards 12,300 levels and higher. Meanwhile, 11,000 serves as a potential stop for downward movements. The Relative Strength Index (RSI) currently stands at 54.96, indicating a supportive environment for price gains. It's not yet in overbought territory, suggesting room for further growth.
L&TBuy: Rs 3,550 | Stop Loss: Rs 3,400 | Target: Rs 3,730 - 3,900
The stock has found substantial support around 3,400 levels. The recent robust bounce from this support suggests a bullish stance for LT. The potential for further upward movement, potentially reaching new all-time highs, is underlined by the stock's resilience at key support levels.
A breakthrough above the resistance at 3,635 could catalyze a strong upward movement, approaching the all-time high levels of 3,730 and beyond. This analysis suggests a favorable outlook for LT, supported by technical indicators pointing towards potential bullish momentum in the upcoming sessions.
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Rajesh Bhosale, Technical Analyst, Angel One
TCSBuy: Rs 4,200 - 4,100 | Stop Loss: Rs 3,940 | Target: Rs 4,750
The IT giant has experienced an impressive rally in recent months, breaking out of a prolonged consolidation phase. While the broader market has been under pressure in the last few sessions, this particular stock has shown remarkable resilience and is now trading in uncharted levels. Looking at the weekly chart, we can see that prices have surged past a significant consolidation breakout pattern known as the 'saucer' formation.
Following this breakout, any minor pullbacks or consolidation phases have been met with buying interest. Despite indicators signaling overbought conditions, they also reflect the stock's underlying strength. Traders are advised to consider purchasing this stock at its current market price or on any subsequent dips.
HDFC BankBuy: Rs 1,445 - 1,420 | Stop Loss: Rs 1,360 | Target: Rs 1,600
This prominent banking heavyweight has been a key contributor to the recent underperformance of the Bank Nifty. However, amid the recent market turmoil, this stock has shown resilience, displaying a relatively muted reaction and appears to be establishing a support base at attractive levels. This consolidation phase aligns with the long-term support of the 200-weekly moving average and is accompanied by robust trading volumes.
There's notable positive divergence evident, wherein although prices have reached new lows, oscillators have not, suggesting substantial accumulation of this stock at lower levels. Additionally, the recent closure of prices above the 20-day exponential moving average (20EMA) on the daily chart indicates a shift towards positive momentum in the short term. Given these factors and the favorable reward-to-risk ratio, we maintain a strong bullish outlook on this stock.
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Rupak De, Senior Technical analyst, LKP Securities
ITCBuy: Rs 420-426 | Stop Loss: Rs 400 | Target: Rs 460
The stock has experienced a consolidation breakout after forming a base on the daily timeframe. The recent increase was supported by a rise in volume. Furthermore, the stock has moved above the near-term moving average.
Additionally, a positive divergence is evident in the RSI, indicating a bullish shift in price momentum. In the short term, the stock may continue its upward movement with the potential to reach towards 460. Support on the lower end is situated at 400.
Bharti AirtelBuy: Rs 1,200-1,205 | Stop Loss: Rs 1,174 | Target: Rs 1,260
The stock has defied the overall market trend by remaining above the critical moving average. Additionally, it has sustained its position above the recent consolidation level.
The RSI indicates a positive crossover. Over the short term, the stock may continue its upward trajectory with the potential to reach towards 1250-1260. Support on the lower end is situated at 1174.
ICICI BankBuy: Rs 1,070-1,080 | Stop Loss: Rs 1,049 | Target: Rs 1,230
The stock has maintained higher top higher bottom formation on the daily timeframe. Besides, the stock has defied the overall market trend by remaining above the critical moving average.
The RSI indicates a positive crossover. Over the short term, the stock may continue its upward trajectory with the potential to reach towards 1070-1080. Support on the lower end is situated at 1049.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
