The Nifty made a strong bearish candle on the daily candlestick chart, which also closely resembles a pattern similar to a Bearish Belt Hold.
Analysts advise investors to avoid long positions for now and stay on the sidelines till the monetary policy committee's meet gets done with. Hawkish commentary from the Reserve Bank of India could lead to a knee-jerk reaction in the market.
The Nifty broke below its crucial short-term moving averages (13-day,5-day, and 20-day EMA) and its next support is placed at 10,576 and 10,558. Bulls would only be able to take control over the market once Nifty closes above 10,770.
The Nifty, which opened at 10,765 on Monday, rose to an intraday high of 10,770.30. However, bears eventually took control over the index and pushed it below 10,700, and 10,650, to hit an intraday low of 10,618.35. The index finally closed 67.70 points lower at 10,628.50.
According to Pivot charts, its key support is placed at 10,574.43, followed by 10,520.37. If the index starts moving upward, key resistance levels to watch out are 10,726.43 and 10,824.37.
The Nifty Bank index closed at 26,257.6. The important Pivot level, which will act as crucial support for the index, is placed at 25,959.8, followed by 25,662.0.
On the upside, key resistance levels are placed at 26,801.5, followed by 27,345.4.
Here are the top stock trading ideas which can give good returns in the near term:
Vinay Rajani of HDFC Securities
Sell Aurobindo Pharma with target at Rs 485 and stop loss at Rs 570
Sell Muthoot Finance with target at Rs 350 and stop loss at Rs 395
Buy Cholamandalam Investment with target at Rs 1,700 and sto loss at Rs 1,490
Ashwani Gujral of ashwanigujral.com
Sell India Cements with a stop loss of Rs 121, target of Rs 110
Sell GSFC with a stop loss of Rs 116, target of Rs 104
Sell Amara Raja Batteries with a stop loss of Rs 770, target of Rs 740
Buy Jubilant Foodworks with a stop loss of Rs 2500, target of Rs 2650
Buy Reliance Industries with a stop loss of Rs 935, target of Rs 960
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Sudarshan Sukhani of s2analytics.com
Buy United Spirits with stop loss at Rs 3250 and target of Rs 3400
Buy BPCL with stop loss at Rs 400 and target of Rs 424
Buy Hexaware Tech with stop loss at Rs 439 and target of Rs 454
Sell ACC with stop loss at Rs 1330 and target of Rs 1270
Sell Capital First with stop loss at Rs 550 and target of Rs 535
Mitessh Thakkar of mitesshthakkar.com
Sell Ashok Leyland with a stop loss of Rs 148.6 and target of Rs 142
Sell Eicher Motors below Rs 29150 with stop loss of Rs 29600 and target of Rs 28300
Sell IDFC with a stop loss above Rs 49
Buy Infosys with a stop loss of Rs 1219 and target of Rs 1275
Buy Lupin with a stop loss of Rs 760 and target of Rs 805
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com/CNBC-TV18 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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