After two back-to-back strong closings, the Indian market opened nearly half per cent lower on Tuesday. However, the benchmarks pared early losses to trade in the green. In the early trade on Tuesday, the broader Nifty50 was seen approaching 16,300 and was trading at 16,289.25, while the Sensex rose marginally by around 41 points to trade at 54,563.  

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Outperforming benchmarks, Nifty Midcap and Small cap rose higher by 0.5% and 0.7% respectively. 

Nifty Auto, PSU Bank and Metal led the recovery among sectoral indices 

Meanwhile, based on their movement on either side, certain stocks came in focus on Monday. These stocks were Vardhman Textiles, Welspun India and Zydus Lifesciences 

Here is what Jatin Gohil - Technical & Derivative Analyst at Reliance Securities say one should do with these stocks on Tuesday.    

VARDHMAN TEXTILES LIMITED - BUY    

After a higher level of reversal (57% fall from its peak level of Rs576), the stock respected its 200-week SMA. The stock bounced after forming a base (Rs287-262) around that moving average and rose to 8-week high subsequently. Its weekly RSI reversed after testing the oversold zone and gave a buy signal. A follow-up move could lead the stock towards Rs334-342-365-379 in the short-term. In case of any decline, the stock will find support around its upper band of the base. Fresh long position can be initiated at the current juncture and on dips towards Rs300 for a probable rise.    

WELSPUN INDIA LIMITED - BUY   

In the last month, again the stock tested its upward sloping 100-month SMA and breached its prior falling trend. On the monthly chart, the stock formed an inverted hammer pattern. This is a reversal candlestick pattern that appears at the bottom of a downtrend and signals a potential bullish reversal. The key technical indicators reversed from the oversold zone on medium-term timeframe chart and witnessed a positive cross- over subsequently. We believe the stock will soon resume its up-trend and erase partial loss. On the higher side, the stock may face a hurdle around Rs77-79 zone. A stable move above that zone could lead the stock towards Rs95 in the  short-term. On the lower side, the stock will continue to find support around its 100-month SMA, which is placed at Rs67.  

ZYDUS LIFESCIENCES LIMITED - SELL   

Since Mar’22, thrice the stock witnessed a pullback, but failed to surpass its 200-week SMA (placed at around Rs380) and reversed subsequently. On 14 th Jul’22, the stock tested that moving average and later, witnessed a sharp reversal. Its daily RSI reversed after visiting the bear market resistance zone (60-67) and gave a sell signal. We believe that history may repeat itself, which could drag the stock towards Rs332 initially and Rs319 subsequently. However, a stable move above that moving average will invalidate probable decline in the stock.