Bears finally and decisively took charge of Dalal Street Thursday with the Nifty50 extending early losses and breaking the psychological 11,300-mark on profit booking.
The index closed sharply lower, forming 'Bearish Belt Hold' pattern on the daily candlestick chart. Weak global cues amid renewed trade war concerns dented market sentiment.
The 50-share NSE Nifty after opening at 11,328.90 which was also an intraday high traded sharply lower to break the 11,300-mark and hit an intraday low of 11,234.95.
The index closed 101.50 points lower at 11,244.70, but the broader markets outperformed frontliners with the Nifty Midcap index rising 0.1 percent. India VIX moved up by 0.45 percent at 12.58. Overall lower volatility suggests that bulls are likely to hold the market on declines near to major support zones.
According to Pivot charts, the key support level is placed at 11,210.17, followed by 11,175.63. If the index starts moving upwards, key resistance levels to watch out are 11,304.07 and 11,363.43.
The Nifty Bank index closed at 27,355.95, down 240.65 points on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 27,293.24, followed by 27,230.57. On the upside, key resistance levels are placed at 27,453.24, followed by 27,550.57.
Here are the top stock trading ideas which can give good returns in the near term:
Hadrien Mendonca of IIFL
Buy IndusInd Bank with target at Rs 2.204 and stop loss at Rs 1,931
Buy Pfizer with target at Rs 2,910 and stop loss at Rs 2,905
Buy Abbott India with target at Rs 8,498 and stop loss at Rs 7,615
Rajesh Agarwal of AUM Capital
Buy Adani Enterprises with stop loss at Rs 192 and target of Rs 205
Buy Venkys with stop loss at Rs 2618 and target of Rs 2820
Buy Jet Airways with stop loss at Rs 319 and target of Rs 350
Buy Dilip Buildcon with stop loss at Rs 839 and target of Rs 870
Buy Idea Cellular with stop loss at Rs 53 and target of Rs 57Disclaimer
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