The Nifty which started on a positive note failed to hold on to momentum and breached its 5-day exponential moving average in September 3. The index closed below its crucial support placed at 11,600 and made a robust bear candle on daily charts which resembles a Bearish Belt Hold kind of pattern.
The Nifty index found support at 13-day exponential moving average (EMA) before closing the day at 11,582, down nearly 1 percent from the previous close of 11,680.
Traders are advised to tread with caution and use rallies to create short positions. The short-term trend will favor bears as long as Nifty trades below 11,760 levels suggest experts.
India VIX spiked up by 6.29 percent at 13.39 and a sudden jump in volatility is a cause of concern for immediate basis.
According to Pivot charts, the key support level is placed at 11,515.87, followed by 11,449.43. If the index starts moving upwards, key resistance levels to watch out are 11,700.27 and 11,818.23.
The Nifty Bank index closed at 27,819.5 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 27,663.54, followed by 27,507.57. On the upside, key resistance levels are placed at 28,089.33, followed by 28,359.17.
Here are the top stock trading ideas which can give good returns in the near term:
Vinay Rajani of HDFC Securities
Sell Escorts with target at Rs 777 and stop loss at Rs 880
Buy Engineers India with target at Rs 148 and stop loss at Rs 127
Buy Wipro with target at Rs 335 and stop loss at Rs 293
Rajesh Agarwal of AUM Capital
Buy CESC with stop loss at Rs 998 and target of Rs 1035
Buy Kajaria Ceramics with stop loss at Rs 467 and target of Rs 482
Buy Wipro with stop loss at Rs 300 and target of Rs 320
Buy JK Paper with stop loss at Rs 158 and target of Rs 172
Buy Gujarat Fluoro with stop loss at Rs 809 and target of Rs 860
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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