The Nifty which opened with a gap up failed to hold onto the momentum and closed just above its crucial support level of 10,700 making a Bearish Belt Hold kind of pattern on the daily charts.
Formation of a Bearish Belt Hold pattern after a bullish candle does not augur well for the bulls, but as long as Nifty holds above 10,680-10,700 levels, the momentum should continue.
The index opened at 10,783.85 and rose marginally to 10,784.65 which made an insignificant upper shadow on the charts before bears took over. The index declined below 10,700 in intraday trade to hit an intraday low of 10,689.80 before closing the day 21 points lower at 10,718.05.
India VIX moved up by 3.88 percent at 12.84. On the options front, maximum Put open interest (OI) is placed at 10,500 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10800 strikes. Fresh Put writing at 10500 and 10700 strikes while Call writing is seen at 11000 and 10800 strikes.
According to Pivot charts, the key support level is placed at 10,676.97, followed by 10,635.93. If the index starts moving upwards, key resistance levels to watch out are 10,771.87 and 10,825.73.
The Nifty Bank index closed at 25,568.3. The important Pivot level, which will act as crucial support for the index, is placed at 25,472.8, followed by 25,377.3. On the upside, key resistance levels are placed at 25,690.3, followed by 25,812.3.
Below are the top trading ideas by market experts which can give good returns today:
Achin Goel of Bonanza Portfolio
Buy Unichem Laboratories with target at Rs 321 and stop loss at Rs 269
Buy Alkem Laboratories with target at Rs 2270 and stop loss at Rs 1903
Buy Castrol India with target at Rs 225 and stop loss at Rs 188
Buy Ujjivan Financial Services with target at Rs 485 and stop loss at Rs 394
Buy SBI Life Insurance with target at Rs 830 and stop loss at Rs 699
Rajesh Agarwal of AUM Capital
Buy Container Corporation of India with stop loss at Rs 1300 and target at Rs 1357
Buy EIH with stop loss at Rs 182 and target at Rs 200
Buy Kansai Nerolac Paints with stop loss at Rs 493 and target at Rs 520
Buy Ujjivan Financial Services with stop loss at Rs 410 and target at Rs 433
Sell Reliance Infrastructure with stop loss at Rs 444 and target at Rs 420
Disclaimer: 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.
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