Day trading guide: Nifty’s declines may extend to 14,080-13,900 levels if it fails to hold above 14,200
Bears have gripped the Indian markets firmly as benchmark indices turned volatile and corrective on Monday. Nifty50 ended the session on the low level of the day with a triple digit reduce following a 100-point gap-up opening, clearly suggesting a weakening uptrend forward of the a lot awaited Union Budget and the Thursday month-to-month expiry session.
Further, it’s the third straight session of declines for the index forming “Three Black Crows”, which is a bearish candlestick sample. Moreover, Nifty has shut store under the 20-DMA assist line at 14,300, which was performing because the cease loss line from 3 Nov 2020. A sustained trade under 14,200 will extend the declines to levels of 14,080-13,900. Though, Technical Indicator RSI on a shorter timeframe has reached oversold territory, value actions stay weak. Only a commerce past 14,450-14,500 will set off brief protecting rallies, taking the index again to levels of 14,600-14,700.
Equity advice
Cipla: BUY
- CMP: Rs 836
- Target: Rs 900
- Stop loss: Rs 790
Stock has resumed uptrend following a short correction. Further, it took assist on the 50-DMA and cluster of latest lows round Rs 790, suggesting power within the inventory. RSI, too, has turned northwards, forming a constructive reversal confirming the bullishness dominant.
Bajaj Finance Futures: SELL
- CMP: Rs 4,918
- Target: Rs 4,600
- Stop loss: Rs 5,100
The inventory has damaged down from a Bearish Flag sample, triggering the beginning of a downtrend. Further, it additionally closed under its fast assist of Rs 5,000-4,950 being the 20-DMA and 50-DMA respectively. RSI has additionally turned decrease from under the 60-level, indicating weak point within the inventory.
(
Aditya Agarwala is Senior Technical Analyst, YES Securities. Views are his personal.)
