Midcap Stocks: Wherever I looked, I found selling; What should those having positions in these midcap stocks do, know from experts – Market

The atmosphere of fear was also clearly visible in the market. Fear indicator India VIX recorded a rise of about 22 percent, due to which the volatility in the market increased significantly. Only 222 shares rose on NSE, while 2663 shares saw a decline. Similarly, on BSE also the number of declining shares was many times more than the rising shares.

action on stocks

Global factors were also important behind the market decline. Due to increasing war tension in the Middle East, crude oil prices jumped by about 25 percent. This rise in crude oil had an impact on many sectors, especially weakness was seen in the shares of aviation, tyre, paint, auto and oil marketing companies. However, amid the weak market, different movements were seen in some stocks due to news. So, market expert Akshay Bhagwat gave his opinion about what the investors who have midcap stocks should do next in the falling market.

Expert advice on sugar stocks

Despite the weak market, there was strength in the shares of sugar sector. Due to increase in crude oil prices, demand for ethanol and molasses is expected to increase, which can benefit sugar companies. For this reason, there was buying trend in stocks like Balrampur Chini, Shri Renuka Sugars and Bajaj Hindustan.

The expert said that we are seeing strength in sugar stocks because crude oil has come to around $120 and sugar is being seen as an alternative to Sugar Malasis. For crude oil replacement, due to that we are seeing a lot of sweetness in sugar stocks. So there’s momentum here. Balrampur Sugar is technically strong. Technical breakout was seen three days ago. There is a short term support zone of Rs 450 level and from the trading point of view, we see an upside of Rs 520 being formed in this stock.

Dhampur Sugar Share Price

Possible base formation is visible on Dhampur Sugar. Short term recovery could be good around Rs 115. Because volume participation is improving a lot since last 3-4 days and short term targets of Rs 145 to 150 can be seen on the upside. So these stocks can be selected from short term perspective.

Akshay Bhagwat said that there has been a lot of movement in MCX platform stocks for the last few days. Although no major move is visible in the exchange industry, yet there is a good momentum in MCX shares. The effect of increasing activities in the commodity market is also being seen on this stock, due to which it is considered natural for it to rise.

According to market experts, a major reason for the intraday rise in MCX could be the trading volumes of crude oil. Earlier, when strong trading volumes were seen in gold, MCX shares had shown a one-sided rise between 2200 and 2500. Now after gold, MCX is getting the benefit of increasing trading volumes in crude oil.

From a technical perspective, investors are being advised to adopt a level-based approach. Experts say that the level of 2600 is short term resistance for MCX. In such a situation, investors who want to make new entries should wait for the breakout above the level of 2600. If this level is broken then the stock can show a target of up to Rs 2800.

At the same time, for investors who already hold MCX shares, the positional outlook is still considered positive. Technically, the level of 2300 is a strong support, while in the next two to three months this stock can even touch the level of 3000. Therefore, experts are of the opinion that staying in MCX with a positive view may be a better strategy for now.

Profit Booking in Banking Shares

In the last two months, there was a good rise in the shares of banking and financial sector. Now after this rise, there seems to be pressure on these shares due to profit booking and margin calls by investors. Although Union Bank is still a bit strong, but due to dominant selling pressure, we can see a lower end up of 170 being formed in the short term.

A negative news was going on in IDFC First Bank. So due to that perhaps lower end up to 60 may be seen in the coming days. According to experts, some more weakness may be seen in these shares in the coming days.

(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.)