Stocks that were in focus included names like JM Financial, which fell 10.42%, Samvardhana, which declined 3.83%, and L&T Finance, whose shares dropped 7.31% on Wednesday.
Here’s what Riyank Arora, Technical Analyst at Mehta Equities, recommends investors should do with these stocks when the market resumes trading today.
JM Financial
The stock fell nearly 10% in today’s session after news of RBI barring JM Financial from financing against shares and debentures came in.
Overall technically, the stock has touched its major support mark of 77.35. Owing to huge volatility, a strict stoploss at 74.00 should be kept for all trading positions and if the stock breaks below the same, it would be an immediate negative sign for the stock.
Samvardhana Motherson
The stock fell nearly 4% after Sumitomo Wiring Systems Japan sold 4.43% stake. Technically, as per charts the stock has a strong support at 117 mark below which downside move can extend further.On the upside however a resistance is placed at 122 mark above which next resistance would be at 125-126 levels.
L&T Finance
The stock has successfully touched its major support of 155. Any break below 155 should push the downside move towards 147.50 and 145.00. Overall, technical structure looks positive with a minor low risk trade for the stock.
Upside can likely pull-back towards 165 and 170 with the expectation of short covering coming back in.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)