The NSE Nifty which opened at 10,732.35 rose to an intraday high of 10,736.15 but then bears took control at Dalal Street and pushed the index towards 10,600 levels. It hit an intraday low of 10,604.65 but managed to recoup half of losses in the last couple of hours of trade before closing the day at 10,657.30, down 57 points.
The index closed below 13-EMA, 5-EMA, and 50-EMA but still maintained the crucial support which is 100-EMA at 10,575. Formation of a Dark Cloud Cover after a bullish candle does not augur well for the bulls and traders should avoid short term bets for the time being, experts suggest.
India VIX moved up by 3.94 percent at 13.37 levels. On the option front, maximum Put open interest (OI) was seen at 10,600 followed by 10,500 strike while maximum Call OI was seen at 11,000 followed by 10,800 strike.
According to Pivot charts, the key support level is placed at 10,595.93, followed by 10,534.57. If the index starts moving upwards, key resistance levels to watch out are 10,727.43 and 10,797.57.
The Nifty Bank index closed at 26,230.3 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 26,070.07, followed by 25,909.83. On the upside, key resistance levels are placed at 26,381.07, followed by 26,531.83.
Here are the top stock trading ideas which can give good returns in the near term:
Vinay Rajani of HDFC Securities
Buy Sun Pharma with target at Rs 600 and stop loss at Rs 545
Buy Tata Elxsi with target at Rs 1,425 and stop loss at Rs 1,300
Sell Shriram Transport Finance with target at Rs 1,180 and stop loss at Rs 1,365
Rajesh Agarwal of AUM Capital
Buy Asian Paints with stop loss at Rs 1273 and target of Rs 1315
Buy BEML with stop loss at Rs 795 and target of Rs 837
Buy Bank of Baroda with stop loss at Rs 110 and target of Rs 120
Sell TV18 Broadcast with stop loss at Rs 50 and target of Rs 45
Sell Century Textiles & Industries with stop loss at Rs 878 and target of Rs 835
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