The last two sessions of the previous week were bad for investors but today’s session was fully dominated by bears. It was difficult to find stocks in the green as investors were fleeing from every counter to sit on the sidelines till the jitters from the US ease.
As most of the counters faced heavy liquidation today, here are 2 stocks that ended up breaking an important support level.
IndusInd Bank Limited
IndusInd Bank Ltd. (NS:INBK) is a private-sector bank, having a market capitalization of INR 88,902 crores. The stock fell 7.4% to close at INR 1,060.1 after the RBI decided to extend CEO's tenure for 2 years, as opposed to the expectations of 3 years which also led some brokerages to steeply cut their target price on this counter.
Image Description: Daily chart of IndusInd Bank with volume bars at the bottom
Image Source: Investing.com
This bad news coupled with bank runs in the US which has spoiled the sentiments of the banking space even in India, turned out to be a disaster for IndusInd Bank shares. The stock broke below its trendline support with heavy volumes of 12.16 million shares, the highest one-day figure since October last year. The stock might slide further to test its psychological level of INR 1,000, from where it reversed in the previous month.
L&T Finance Holdings Limited
L&T Finance Holdings Ltd (NS:LTFH) is an NBFC (non-banking financial company) with a market capitalization of INR 22,304 crores. Due to fear in the financial space, the stock took a decent hit of 4.5% to INR 85.9 as it delivered a major breakdown from a symmetrical triangle chart pattern on the daily chart.
Image Description: Daily chart of L&T Finance Holdings with volume bars at the bottom
Image Source: Investing.com
This is quite a bearish signal and as the stock has closed below the lower trendline support of the triangle pattern, the next move in the stock could be a sharp plunge. On the conservative side, L&TFH shares could easily nosedive to INR 82 which is an important support level. As long as the peak of INR 93.3 is intact, the trend should be deemed to be a negative one.
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