The Nifty snapped its four-day winning streak and closed Friday's sideways session on a weak note, forming an indecisive Doji pattern on the daily candlestick charts. On the weekly scale, the index formed a bullish candle.
The index after opening lower at 11,566.60 managed to clawback to hit a high of 11,604.60. It wiped out its gains in the first hour of trade itself to hit a low of 11,532. It remained rangebound for rest of Friday and closed 25.70 points lower at 11,557.10. For the week, the Nifty rallied 0.75 percent.
India VIX fell 3.35 percent to 12.33 levels. Lower volatility suggests that bulls could support the market on a decline.
According to pivot charts, key support is placed at 11,524.53, followed by 11,491.97. If the index starts moving upwards, the key resistance levels to watch out are 11,597.13 and 11,637.17.
The Nifty Bank index closed at 27,834.70, down 193.20 points on Friday. The important pivot level, which will act as crucial support for the index, is placed at 27,704.06, followed by 27,573.43. On the upside, key resistance levels are placed at 28,044.06, followed by 28,253.43.
Here are the top stock trading ideas which can give good returns in the near term:
Rajesh Agarwal of AUM Capital
Buy JSW Steel with stop loss at Rs 345 and target of Rs 368
Buy Cadila Healthcare with stop loss at Rs 388 and target of Rs 410
Buy LIC Housing Finance with stop loss at Rs 563 and target of Rs 585
Buy Apollo Hospitals with stop loss at Rs 1175 and target of Rs 1225
Buy RBL Bank with stop loss at Rs 599 and target of Rs 624
Dyaneshwar Padwal of KIFS Trade Capital
Buy DLF with target at Rs 230 and stop loss at Rs 200
Buy Persistent Systems with target at Rs 930 and stop loss at Rs 840
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