The Nifty which started with a gap on the lower side went on to test its crucial support placed at 50-days exponential moving average (DEMA) from where it bounced back to close above 9800 on Thursday. The index formed a bearish candle for the fourth consecutive day in a row and a convincing breach of 50-DMA in the next few sessions could lead to further downside in the markets.
The Nifty opened at 9,872.85 and rose marginally to 9,892.65 but then bears took control of D-Street which pushed the index below its 50-DMA placed at 9,782. The index bounced back from its intraday low before closing 87 points lower at 9,820.
The Nifty closed at 9,820.25, down 87 points on Thursday. According to Pivot charts, the key support level is placed at 9,766.75, followed by 9,713.25. If the index starts to move higher, key resistance levels to watch out are 9,883.2 and 9,946.15.
Nifty Bank closed 157.25 points lower at 24,217.35 on Thursday. Important Pivot level, which will act as crucial support for the index, is placed at 23,917.37, followed by 23,617.43. On the upside, key resistance level is 24,422.07, followed by 24,626.84.
According to Technical Analyst, Prakash Gaba of prakashgaba.com, 9900 would be resistance and a slide to 9700 is a possibility too. The crucial support for the Nifty is at 9700 and the resistance is at 9900, Bank Nifty on the other hand has support at 23750 and resistance at 24500.
Below are the 4 stocks which are good buys and sells:
HCL Technologies: Indicator Buy | Rating: Buy | Target: Rs 895, stop loss: Rs 875
Tech Mahindra: Bounce from support | Rating: Buy | Target: Rs 420, stop loss: Rs 390
GAIL India: Breakdown | Rating: Sell | Target: Rs 350, stop loss: Rs 375
Tata Motors: Breakdown | Rating: Sell | Target: Rs 340, stop loss: Rs 400Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.