Amid hike in repo rate by the Reserve Bank of India (RBI), the Indian market extended the losses to fourth day as benchmarks closed in the red amid volatility. The RBI had raised the repo rate by 50 basis points on Wednesday in order to check spiralling inflation. The broader Nifty50 and the Sensex declined by 0.37% and 0.39% respectively as the indices closed at 16,356 and 54,892.49. Following benchmarks, Nifty midcap and small cap declined by around 0.5% and 0.3%.  

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Sectorally, Realty, PSU Bank, Media and Realty gained in an otherwise negative market, while FMCG and oil & gas declined the most.  

"RBI turned realistic by withdrawing their accommodative stance, realising the need for front-loaded action and increased inflation forecast by 100bps to 6.7%, said Vinod Nair, Head of Research at Geojit Financial Services. 

"On the bright side, there were some positive points like no increase in CRR, economic growth was maintained healthy at 7.2% and no additional measures were announced to reduce the liquidity of the banking system. However, the focus shifted to the global market, which is anticipating a hawkish Fed policy, starting next week," the expert added. 

Meanwhile certain stocks came in focus on Wednesday. These stocks are Elgi Equipment, Praj Industries and GNFC. Elgi Equipment closed with nearly five per cent gain, Praj Industries ended higher by over four per cent and GNFC declined more than five per cent on Wednesday.  

Here is what Santosh Meena, Head of Research, Swastika Investmart Ltd, suggest investors should do with these stocks.  

Elgi Equipment: 
The counter is in a bullish momentum and forming a bullish flag formation to continue this momentum for further upside where the previous swing high around 422 is an immediate target level. On the downside, the previous breakout level of 360 is an immediate support level while 350-340 is also a strong demand zone. Momentum indicators are positively poised to support the current strength of the trend.   
 
Praj Industries 
The counter is consolidating in a wide range of 400-300 for more than a year where it is bouncing back from the lower end of the range, therefore, there is a good chance that it may head towards the higher end of the range. Any decisive breakout from this range will dictate the further direction of this stock. On an immediate basis, 360-370 is a resistance area.   
 
GNFC 
The counter is showing signs of distribution after a vertical rally where rising 200-DMA will be immediate support that may coincide with the 560-550 support zone; below this, there is a risk of a trend reversal. On the downside, 500 will be the next important hurdle while 680-700 is a critical supply zone on the upside. Momentum indicators are also losing momentum. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)