The domestic equity market extended losses for the second day in a row on Monday in a holiday-shortened week. The NSE and BSE will remain closed on Tuesday on account of Id-Ul-Fitr (Ramzan Id).  Benchmarks were dragged by IT, auto and consumer durable stocks the most, however, bank and financial stocks helped Nifty and Sensex pare most of the losses in closing the hours. 

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Earlier on Monday, the broader Nifty50 closed above 17,000-mark, while the Sensex dropped 85 points. The 12-share Bank Nifty gained over 70 points to end near 36,200.  

In the broader market, Nifty mid cap declined nearly 0.6% and small cap fell by 1.3% on Monday ahead of FED meeting minute on Wednesday.  

As per experts, going ahead, Investor focus will turn to the Fed meeting, which is widely expected to raise interest rates by 50 basis points on Wednesday. Market participants would also watch for signals about the future path for interest rates, the Fed`s plans for reducing its balance sheet and its view on when inflationary pressures will recede. 

Vinod Nair, Head of Research at Geojit Financial Services, said the recent hawkish turn by Fed has made investors extra cautious ahead of the upcoming Fed meeting triggering high volatility in the market.  

Markets managed to rebound amid the weak global setup which shows that bulls are not in the mood to surrender easily, said Ajit Mishra, VP - Research, Religare Broking.  

"However, the real test would be to handle the volatility post the US Fed meeting. The domestic factors like earnings and macroeconomic data would further add to the choppiness. It’s prudent to limit positions and continue with a stock-specific trading approach, "he added.  

Meanwhile, certain stocks came in focus on Monday. These stocks were Tata Chemicals, Amber Enterprises and Dixon Technologies. Tata Chemicals closed with nearly 10% gains, Amber Enterprises jumped around 6% and Dixon Technologies which dropped more than 9% on Monday 

Here is what Jatin Gohil - Research Analyst at Reliance Securities, suggest investors should do with these stocks 

Tata Chemicals          

Recommendation: Buy on dips | Target: Rs1,158 | Stop Loss: Rs930 | Time Duration: 1-2 months 

On 25th April’22, the stock retraced its 38.2% Fibonacci Retracement level of prior up-move (Rs781-1,022), which was placed at Rs930 and remained sideways thereafter. 

Yesterday (on Monday), the stock bounced utilizing prior consolidation and rose to 3-month high of Rs1,048. 

Major moving averages are sloping upwards and the key technical indicators are in favor of bulls. 

This could lead the stock towards its life-time high of Rs1,158. 

In case of decline, its prior swing low will work as a key support point, which is placed at Rs930. 

Fresh long position can be initiated at current juncture and on dips for the probable up-move. 

Amber Enterprises 

Recommendation: Buy on dips | Target: Rs4,550 | Stop Loss: Rs3,400 | Time Duration: 2-3 Months 

On 2nd May’22, the stock witnessed a breakout from cup and handle pattern with relatively higher volume. 

Its daily RSI given trendline breakout. 

The stock has potential to move towards its breakout point, which is placed at around Rs4,550. 

On the lower side, the stock will find support around Rs3,450-3,400 zone. 

Fresh long position can be initiated at current juncture and on dips for the desired action. 

Dixon Tech 

Recommendation: Sell on rise | Target: Rs3,345 | Stop Loss: Rs4,450 | Time Duration: 3-4 Weeks 

On 25th January’22, the stock violated its long-term moving average 200-day SMA and extended loss. 

Later, the stock retested its 200-day SMA and resumed its down move. 

Yesterday, the stock extended its loss, post a gap down opening and slipped to 8-month closing low. 

The key technical indicators are in favor of bears. 

This could drag the stock towards Rs3,760 initially and Rs3,345 subsequently. 

On the higher side, the stock will face hurdles around Rs4,350-4,450 zone. 

(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