The weakness on Friday was largely due to the selling pressure in the banking and financial services sector following the Reserve Bank of India’s move to tighten rules on unsecured consumer loans.
This move saw shares of SBI Cards and Payment Services plunge more than 5%, and those of Aditya Birla Capital drop as much as 7% intraday. SBI Cards stock also hit its lowest level in nearly 9 months at Rs 720.80.
Santosh Meena, head of research, Swastika Investmart advises how to trade in the stocks when trading resumes on Monday:
The stock has been in a severe downtrend for the last six months. However, Rs 700 is a multi-month support level. If it manages to hold this level, then we can expect a relief rally where 200-DMA at around Rs 800 will be the key hurdle. But if it slips below the Rs 700 mark, then further selling pressure can take the stock to Rs 600 level.
Aditya Birla Capital
The stock has been forming lower highs and lower lows for the last six months. However, currently it is trading near the critical support of 200-DMA, placed at around Rs 170. If it manages to reach its 200-DMA, then we can expect a bounceback, while a major upside is expected only if it breaks the resistance level of Rs 185.FSN E-Commerce (Nykaa)
Nykaa stock has witnessed the breakout of a critical horizontal resistance line placed at Rs 155 with healthy volumes. We can expect a move towards the Rs 200 mark in a couple of months, which was an earlier support level.
Now the breakout level of Rs 155 should act as an immediate support level, while a cluster of moving averages around Rs 145 will be the key support levels.
Rail Vikas Nigam
The stock is forming a beautiful higher highs and higher lows formation where, after a pullback, it is again resuming its upward journey with an immediate base at 20-DMA. On the upside, Rs 175 is an immediate target, while Rs 190–200 will be the key resistance area. On the downside, 100-DMA at Rs 145 is a key base point.
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