As 10,000-10,220 seems profit booking zone, change strategy from buying declines to sell-on-rise

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26 Aug, 2025 12:21

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Sacchitanand Uttekar

Dark Clouds Looming as the formation on the weekly scale indicates upside to remain capped. Series of Inside Bar formations since last few days around the resistance zone around 10,000 on the Nifty50 also signals towards a weakening trend. 10,000-10,220 remains the opportune sell / supply zone from hereon which is also indicated by options data while initial support remains firm at 9,500.

Volatility across the globe has again started spiking up which India VIX too saw a rebound from its 200 DEMA support as it witnessed a jump of about 7 percent week-on-week.

Looking at the broader picture & the conjunction of Time Cycles on the daily scale, it's ideal to refrain from building any fresh longs and utilize the upmove if any to exit longs & create selective shorts on its way up. 10,000-10,220 remains as a profit booking / sell zone hence a strategy needs to be changed from buying declines to sell on rise.

Pattern would be considered void on weekly close above 10,340, until then expect weakness to prevail with heightened volatility.

Sell HDFC Life Futures

Ongoing bullish sequence since the low of March 23, 2020 seems to have terminated as the stock slipped below its prior swing support around Rs 500. Prior to this it had also failed to register a fresh high above its previous swing life high of Rs 534.

On the weekly basis, it looks like a fallen three formation awaiting its confirmatory close below Rs 495. On the daily scale it has been trending below its 200 DEMA placed around Rs 517 while its RSI has slipped below 50 mark. Early indications of weakness are exhibited & hence fresh shorts could be deployed with a stop above Rs 522 for an initial target of Rs 460.

Sell L&T Futures

Engulfing Bearish formation on the weekly scale coupled with a negative crossover of the short term averages placed on daily sequence. Stock has been witnessing fresh open interest additions since a week now & closed below its critical support around Rs 900.

A breach below Rs 880 in the coming days could amplify the move towards Rs 820-800 zone. Fresh shorts can be added with a stop above Rs 905 for an eventual swing target towards Rs 820.

The author is DVP – Technical (Equity) at Tradebulls Securities.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.