In current trend, higher targets expected for the week are at around 10835-10900 levels. Nifty can take support at 10550/10600 levels for the week and we may see resistance at 10850/10900 levels, says Mustafa Nadeem of Epic Research.
Mustafa Nadeem
Nifty closed the day down by 1 percent at 10,656.20. Technically, we see a big red candle with open below yesterday’s positive close and ending the day near to its day’s low signifying the selling pressure at higher levels.
Nifty had yesterday given a break out from a falling trend-line of a W pattern formed at recent swing highs of 10,750-levels. We believe the down move is a pullback to the trend-line which is at 10,595-10,610 levels. Bulls have to defend the current levels and if it breaks below 10,595, it can open gates to much lower targets at 10,450.
In current trend, higher targets expected for the week are at around 10,835-10,900 levels. Nifty can take support at 10,550/10,600 levels for the week and we may see resistance at 10850/10900 levels. Bank Nifty also closed the day down -187 Points at 26,113 led by fall of over 6% in Yes Bank.
The market is still cautious as RBI and government spat has not clearly ended but will be overlooked by a Committee to be formed by the RBI Board.
All the sector indices were down except for Realty which barely managed to close the day in green. Market breath was negative; we had 481 advancing stocks and 1265 declining stocks on NSE.
Here are the top stock trading ideas which can give good returns:
GAIL India: Buy | Target: Rs 351 | Stop loss: Rs 341
The stock has shown the strength in yesterday's trading session with average volumes and closed in green. It also took the support of trend-line on the daily chart and RSI also took the support on the daily chart. We recommend buying above Rs 346 for the target of Rs 351 with the stop loss of Rs 341.
Bharat Financial Inclusion: Buy | Target: Rs 970 | Stop loss: Rs 945
The stock has given the closing above the resistance level on the daily chart and it also closed above the 200 EMA on the hourly chart. The CCI is also showing strength on the daily chart. We recommend buying around Rs 955 for the target of Rs 970 with the stop loss of Rs 945.
Jindal Steel & Power: Sell | Target: Rs 167 | Stop loss: Rs 173
The stock was consolidating for a week and today gave a breakout of support level on the daily chart on the closing basis with good volumes and closed near yesterday's low. The RSI and CCI are looking bearish on the daily chart. We recommend selling below Rs 170 with the stop loss of Rs 173 for the target of Rs 167.
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