The Nifty managed to defend its crucial support of 9,500 but closed at 1-month low on Tuesday and made a solid bearish candle on the daily candlestick charts.
The Bulls tried to cover some ground which explains slightly large lower shadow. Now, a close below 9,500 in Wednesday’s trading session could fuel further weakness. If the index breaches 9,473 (intraday low), the next logical target on the downside is placed around 9,430-9,300.
The Nifty opened at 9,594.05 and rose to an intraday high of 9,615.40. It slipped over 140 points to hit its intraday low of 9,473.45. It closed 63 points lower at 9,511.40.
According to Technical Analyst Prakash Gaba of prakashgaba.com, technically a sell been generated and a stiff resistance exists at 9620 and a slide to 9520-9466 is a possibility. The Nifty opened in the green but could not sustain and turned down from our resistance taking care to see the low near our supports and to close deep in the red. Technically, now if it continues to slide then the next logical technical target is 9466-9439-9400. The crucial support for the Nifty is at 9466-9439-9400 and the resistance is at 9560-9591. On the other hand the Bank Nifty has support at 22950 and resistance at 23500," he added.
Below are some of the stocks which Prakash Gaba is betting on:
Bullish Plays
Adani Enterprises: Indicator Buy | Rating: Buy | Target: Rs 137, stop loss: Rs 126
Axis Bank: Indicator Buy | Rating: Buy | Target: Rs 505, stop loss: Rs 485
Bearish Plays
Cipla: Breakdown | Rating: Sell | Target: Rs 523, stop loss: Rs 540
NIIT Technologies: Breakdown | Rating: Sell | Target: Rs 540, stop loss: Rs 570
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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