Nifty saw a gap-down opening on Friday and the selling pressure continued throughout the session dragging the index to close near the day's low. The daily price action formed a sizable bearish candle.
Nifty closed at 14,619 with a loss of 275 points (down 1.85 percent) while the Sensex lost 983 points (down 1.98 percent). The index failed to surpass the past 4-6 weeks multiple resistance zone of 14,900-on closing basis.
Going forward, 14,900-15,000 levels will remain a crucial resistance zone. On the daily and weekly chart, the index continues to trend lacklustre within 14,900-14,200, representing a sideways trend.
The next higher levels to be watched are around 14,800 levels. Any sustainable move above 14,800 may cause the momentum towards 15,000-15,200 levels. On the downside, any violation of an intraday support zone of 14,600 levels may cause profit-booking towards 14,500-14,400 levels.
The daily strength indicator RSI and the momentum indicator Stochastic both have turned bearish along with negative crossover which supports bearish sentiments ahead.
Here is the list of three stocks which can be bet for the next week:
Bata India: Buy | CMP: Rs 1,362 | Stop Loss: Rs 1,330 | Target: Rs 1,390-1,420 | Return: 2.1-4.3 percent
On the daily chart, the stock has witnessed a strong reversal from its one-year multiple support zone of Rs 1,260-1,240 levels. Hence, going ahead, Rs 1,260-1,240 will act as a crucial support zone in the near term.
On the weekly chart, the stock has formed a 'Morning Star' candlestick pattern which signals a short-term trend reversal. In Friday's session, the stock gained good momentum along with a rise in volumes which reconfirm bullish sentiments.
Tinplate Company of India: Buy | CMP: Rs 198 | Stop Loss: Rs 186 | Target: Rs 205-218 | Return: 3.5-10.1 percent
The stock has decisively broken out its four monthly consolidation range OF Rs 190-150 along with huge volumes which shows a strong come-back of bulls. The stock is well placed above its 20, 50, 100 and 200-day SMA which supports bullish sentiments on short and medium-term charts. The daily and weekly strength indicator RSI has turned bullish along with positive crossover which supports rising strength.
Prince Pipes: Buy | CMP: Rs 531 | Stop Loss: 510 | Target: Rs 550-565 | Return: 3.6-6.4 percent
The stock is in a strong uptrend across all the time frames. With the current close, it’s now approaching its all-time high which is a positive sign.
It has also broken out its two weeks consolidation range of Rs 525-47) on closing basis along with a huge volume spurt. This indicates increased participation on breakout levels. The daily and weekly strength indicator RSI have turned bullish along with positive crossover which supports rising strength.
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