The Nifty started on a positive note Wednesday but failed to keep the momentum going. The index closed below its crucial 200-day exponential moving average (DEMA) for the second day in a row. It formed a small-bodied candle which closely resembles a ‘Spinning Top’ kind of indecisive pattern.
The Nifty index opened gap up and negated its formation of lower highs - lower lows of the last four trading session. It came under selling pressure in afternoon trade and pulled the index below 200-DEMA placed around 10165, and 5-DEMA which was placed at 10,185.
Investors are advised to tread with caution ahead of the US Federal Reserve policy meeting. But, technically, there is a higher possibility the market has bottomed out near 10,040, suggest experts.
India VIX fell down by 3.22 percent at 15.10. A decline in volatility from the last two trading sessions is providing some comfort to the Bulls but needs to fall below 13.50-13 to process for a short-term reversal after the recent decline of around 1100 points.
According to Pivot charts, the key support level is placed at 10,116.37, followed by 10,077.53. If the index starts moving upwards, key resistance levels to watch out are 10,210.67 and 10,266.13.
The Nifty Bank index closed at 24,255.6 on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 24,156.27, followed by 24,056.93. On the upside, key resistance levels are placed at 24,407.37, followed by 24,559.13.
The Nifty futures on the Singaporean stock exchange were trading higher by around 17.5 points at 10,196, a rise of around 0.17 percent. This indicates that the domestic market is likely to open on a flat to positive note.
Moneycontrol.com has collated a list of trading ideas from top market experts which one can take cues for better returns:
Ashwani Gujral of ashwanigujral.com
Buy Radico Khaitan with a stop loss of Rs 338, target of Rs 360
Buy Jubilant Foodworks with a stop loss of Rs 2180, target of Rs 2260
Buy Sonata Software with a stop loss of Rs 310, target of Rs 325
Sell Union Bank of India with a stop loss of Rs 98, target of Rs 90
Sell BHEL with a stop loss of Rs 85, target of Rs 77
Sell Balrampur Chini with a stop loss of Rs 93, target of Rs 85
Buy Titan Company with a stop loss of Rs 870, target of Rs 905
Buy Bata India with a stop loss of Rs 706, target of Rs 725
Mitessh Thakkar of miteshthacker.com
Buy Dewan Housing Finance with a stop loss of Rs 513 and target of Rs 537
Buy ICICI Prudential Life Insurance with a stop loss of Rs 377 and target of Rs 395
Buy Jubilant Food with a stop loss of Rs 2180 and target of Rs 2275
Buy Motherson Sumi Systems with a stop loss of Rs 301 and target of Rs 322
Sell Godrej Industries with a stop loss of Rs 538 and target of Rs 500
Buy Motherson Sumi Systems with a stop loss of Rs 309.5 for target of Rs 324
Buy Britannia Industries with a stop loss of Rs 4828 and target of Rs 4930
Prakash Gaba of prakashgaba.com
Buy Bharat Financial with target at Rs 1108 and stop loss at Rs 1075
Sell Apollo Hospitals with target at Rs 1000 and stop loss at Rs 1040