Big Movers on D-St: What investors should do with ITC, TechM, Manappuram Finance

Indian market closed in the red on Thursday for the second consecutive day. Benchmark indices recorded their worst intraday selloff since March 2020.

The S&P BSE Sensex plunged by more than 1,400 points while the Nifty50 closed below 15,900-16,000 levels.

Sectorally, selling was seen in IT, metals, telecom, and consumer durable stocks. The S&P BSE Mid-cap index plunged 2.6 per cent while the S&P BSE Small-cap index was down by 2.2 per cent.

Stocks that were in focus include names like ITC which rose more than 3 per cent, Tech Mahindra fell over 5 per cent, and Manappuram Finance dropped by more than 9 per cent on Thursday.

Here's what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities recommends investors should do with these stocks when the market resumes trading today:

ITC: Buy
The stock has rallied over 6 per cent so far in the week. On Thursday, despite weak market conditions, the stock rallied nearly 4 per cent.

On the daily and weekly charts, it has formed a promising price-volume breakout formation which indicates further upside from the current levels.

For the breakout traders, Rs 264 would be the key levels to watch out. The overall chart structure suggests that if the stock sustains above the same then a breakout continuation texture is likely to continue up to Rs 300-307.

Manappuram Finance: Trend remains weak
The stock has corrected by nearly 20 per cent so far in the month. On daily and weekly charts, it consistently formed a lower top series formation which is broadly negative for Manappuram Finance.

The short-term texture of the stock is weak but is also oversold at current levels. We are of the view that, as long as it (Manappuram Finance) is trading below 98 the correction wave is likely to continue.

Below which it could retest the level of Rs 90. Further downside may also continue which could drag the index up to Rs 85. On the flip side, above Rs 98 a pullback move could continue till Rs 102-106.

Tech Mahindra: Pullback possible
The stock is consistently facing selling pressure at higher levels. On Thursday, it opened below the important support level of Rs 1,155 and post breakdown it intensified weak momentum which is grossly negative.

In this quarter so far, it corrected over 25 per cent. Technically, the short-term formation is still into the weak side but momentum indicators indicate a strong possibility of a pullback rally from the current levels.

For the traders now, Rs 1,155 would be the key level to watch out for. Above which, we could expect a fresh pullback rally till Rs 1,200-1,250.

On the flip side, below Rs 1,155 it could slip to Rs 1,080-1,050 Short-term traders should remain cautious and be very selective as there is a risk to get trapped at lower levels.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)