Key Takeaways
- Tejas Networks rallied 19% on Feb 27, outpacing a 1.2% Sense‑X decline.
- Redington, Camlin Fine Sciences, Netweb Technologies and CPC Corp all posted double‑digit gains.
- Technical signals: Tejas crossed its 20‑day EMA; Redington executed a classic failed‑breakdown trap.
- Sector lens: Telecom hardware, distribution, specialty chemicals and petroleum are showing resilience amid geopolitical stress.
- Playbook: Bull case hinges on volume‑driven momentum; bear case warns of a broader FII outflow reversal.
Most traders dismissed the market‑wide sell‑off as a death knell—then Tejas Networks turned the tables.
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Market Trends: Stocks Rise Despite Tech Sector Concerns
Why Tejas Networks' 19% Surge Defies a Broad Market Crash
Tejas Networks Ltd posted a 19% intraday gain, the highest among the five stocks that bucked the downward trend on February 27. The rally was anchored by a decisive break above the 20‑day exponential moving average (20‑EMA), a level the stock hadn’t cleared since December 2024. Analyst Rajesh Bhosale of Angel One highlighted that the price now sits on a strong volume base, with the next resistance band at ₹480‑₹500 and support near ₹370. This technical breakout coincides with a 34% weekly gain and a 46.3% monthly surge, indicating a short‑term momentum wave that could extend if buying pressure sustains.
Redington’s Failed Breakdown Trap: How a Classic Pattern Fueled a 17% Rise
Redington Ltd surged 17% after a dramatic price action that Anshul Jain of Lakshmishree described as a “failed breakdown.” The stock briefly slipped below its rectangle support at ₹246, only to snap back above the ₹250 level with a volume spike that dwarfed its 50‑day average by more than 5,000%. The pattern flushed out weak longs and forced short sellers to cover, creating a self‑reinforcing upward thrust. As long as Redington holds above ₹250, the setup favors a test of the rectangle top near ₹299. A close back below ₹246 would invalidate the bullish thesis, but current price action suggests the upside target remains viable.
Netweb Technologies: Higher Bottoms Signal a Multi‑Week Upswing
Netweb Technologies India Ltd posted an 8% gain on the day, adding to a 6% weekly increase and a 26.4% monthly rise. Bhosale notes that the stock formed a higher bottom on the weekly chart, a classic sign of improving relative strength. The price is now anchored around ₹3,500 with a potential upside target near ₹4,400. The stock’s year‑to‑date return of 146.4% underscores its status as a long‑term performer, and the recent technical formation suggests the momentum could continue into the next trading week.
Camlin Fine Sciences and CPC Corp: Base Building Amid Sector Volatility
Camlin Fine Sciences Ltd advanced 10% on the day, adding to modest weekly (4%) and monthly (5.7%) gains. The stock is consolidating above its 200‑week moving average, with support around ₹140 and immediate resistance near ₹160. A breakout above ₹180 could trigger a sharper rally.
Chennai Petroleum Corporation Ltd (CPC) rose 6.25%, propelled by an inverse head‑and‑shoulders pattern on the daily chart—a bullish reversal formation that places the price comfortably above major moving averages. Bhosale recommends buying dips with support at ₹940 and targets at ₹1,050 and ₹1,200, reflecting a near‑term upside corridor.
Macro Backdrop: FIIs Exit, Geopolitical Tension, and the Sensex/Nifty Slide
While the five stocks rallied, the broader market suffered. The Sensex fell 1.17% (961 points) and the Nifty 50 dropped 1.25% (318 points), driven by foreign institutional investors (FIIs) netting an outflow of ₹3,466 crore and a lackluster global risk appetite amid stalled US‑Iran nuclear talks. Domestic institutional investors (DIIs) partially offset the pressure with net buying of ₹5,032 crore. Historically, such FII‑driven corrections have been followed by sector‑specific rebounds, especially in defensive or export‑oriented segments that benefit from a weaker rupee.
Sector‑Level Implications: Who Benefits When the Market Sells?
The rally in telecom equipment (Tejas), distribution (Redington), specialty chemicals (Camlin), IT services (Netweb), and petroleum (CPC) highlights a broader theme: companies with strong order books, export exposure, or niche product lines can thrive when macro sentiment turns sour. For example, Tejas Networks, a key supplier of optical transport equipment, stands to gain from increased capex spending by telecom operators looking to upgrade 5G infrastructure. Redington’s distribution network positions it well to capture demand for consumer electronics as lower‑priced imports re‑enter the market.
Investor Playbook: Bull vs. Bear Cases
Bull Case: Continued volume‑driven upside, further technical breakouts above key resistance levels, and a possible reversal of FII outflows as global risk appetite stabilizes. Targets: Tejas ₹500, Redington ₹300, Netweb ₹4,600, Camlin ₹180, CPC ₹1,200.
Bear Case: Persistent geopolitical escalation, renewed FII sell‑off, and a broader market correction that drags even resilient stocks lower. Watch for a break below the 20‑EMA on Tejas (₹370), a close under ₹246 on Redington, or a failure to hold above the 200‑week average on Camlin. Defensive positioning or stop‑losses at these levels would be prudent.
In a market where 73% of readers abandon an article within seconds, the five‑stock surge offers a compelling case study of how disciplined technical analysis and sector fundamentals can uncover hidden upside even when the broader indices are in retreat.