Moneycontrol News
Nervousness ahead of exit polls and results of five state elections and consistent global weakness spooked markets on December 6. The Nifty fell below 10,600 level and the Sensex shed over 600 points intraday. The rupee's depreciation by 43 paise against the US dollar also dented market sentiment.
The exit poll of state elections will be announced on the evening of December 7 immediately after the voting in Rajasthan and Telangana. Final results will be declared on December 11.
The cautious trend is expected to continue ahead of elections results, experts said, adding if the Nifty index closes below 10,500 in coming sessions, then there could be a further correction.
The Nifty50 after a sharp gap-down opening extended losses as the day progressed and fell below 10,600 levels to hit an intraday low of 10,588.25. The index closed 181.70 points or 1.69 percent lower at 10,601.20, forming bearish candle on the daily charts.
India VIX has moved up by 5.62 percent to 19.42 levels. The VIX is not ready to cool down and its hovering at a higher band suggests restricted upside and volatile swings in the market, experts said.
According to Pivot charts, the key support level is placed at 10,552.03, followed by 10,502.87. If the index starts moving upward, key resistance levels to watch out are 10,686.53 and then 10,771.87.
The Nifty Bank index closed at 26,198.30, down 321.30 points on December 6. The important Pivot level, which will act as crucial support for the index, is placed at 26,111.83, followed by 26,025.37. On the upside, key resistance levels are placed at 26,322.33, followed by 26,446.37.
Here are the top stock trading ideas which can give good returns in the near term:
Vinay Rajani of HDFC Securities
Buy State Bank of India with target at Rs 308 and stop loss at Rs 273
Buy Hero MotoCorp with target at Rs 3250 and stop loss at Rs 2910
Buy Kotak Mahindra Bank with target at Rs 1325 and stop loss at Rs 1160
Rajesh Agarwal of AUM Capital
Buy Sun Pharmaceutical Industries with stop loss at Rs 412 and target of Rs 431
Buy Bharat Petroleum Corporation with stop loss at Rs 320 and target of Rs 332
Buy Greenply Industries with stop loss at Rs 132 and target of Rs 145
Buy Birla Cable with stop loss at Rs 188 and target of Rs 204
Buy Sun TV Network with stop loss at Rs 578 and target of Rs 610
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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