The Indian market closed in the red for the third consecutive day on Wednesday. The S&P BSE Sensex fell more than 300 points while the Nifty50 managed to hold on to 16,000 levels.
Stocks that were in focus included names like Asian Paints, which tanked over 8 per cent, Berger Paints, which lost more than 7 per cent, and GMDC, which plunged over 19 per cent on Wednesday. Here's what Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research, recommends investors should do with these stocks when the market resumes trading today.
Asian Paints | Sell | Stop Loss: Rs 2910| Target: Rs 2730
Asian Paints tumbled as much as 8 per cent in front of
Grasim Industries is doubling the capex in the paints business to Rs 10,000 crore.
It may disturb the market structure. On the technical front, the stock is sustaining below the 100 & 200 DEMA; the momentum oscillator RSI is headed downward and reads at 36, which suggests further downward movement in the prices.
Berger Paints | Sell | Stop Loss: Rs 585| Target: Rs 525-510
Grasim Industries doubled the capex in the paints business to Rs 10,000 crore. The announcement from Grasim Industries raises concerns about business disruption in the paint sector.
On the technical front, the stock is sustaining below all the important moving averages, and the momentum oscillator RSI continues its lower low formation, suggesting further downward movement in the prices.
GMDC | Sell | Stop Loss: Rs 142 | Target: Rs 110
The share price of GMDC tanked over 19 per cent on Wednesday. Prices have declined over 42 percent from the all-time high; during the session, the stock price formed a low of Rs 130.50, which is the lowest since March 3, 2022.
The stock has given a fresh breakout after a prolonged consolidation of nearly two weeks within the range of Rs 167 to Rs 185. Prices are likely to face resistance around Rs 142 levels on the upside.
On the downside, Rs 128 will act as an immediate support area. Below this, we can expect a lag down towards Rs 110 levels in the near term.