The market continued its southward journey for third consecutive day on Friday and closed in the red for eight out of last nine sessions. The Nifty50 attempted positive opening again but failed to hold the upside and remained lower for major part of the session on last trading day of September month, dragged by metals, IT and auto stocks.
The index closed far below 11,000 levels, forming bearish candle on the daily charts.
In fact, the month of September was like a nightmare for the market as the Nifty lost 6.4 percent, forming a long bearish candle which resembles a Bearish Engulfing pattern on the monthly charts. IL&FS-led liquidity fears in NBFC segment, rising crude oil prices and rupee volatility caused selling pressure in the market.
The Nifty50 managed to open higher above psychological 11,000 levels but wiped out all gains in first few minutes of trade. The index managed to rebound and hit an intraday high of 11,034.10 but that recovery again sold into and it a day's low of 10,850.30, which is the crucial support for next week, experts said.
The index finally closed 47 points lower at 10,930.50.
India VIX moved down by 1.24 percent to 16.71 levels. It has spiked by 9.36 percent in this week while up by 35 percent in this month. Rising volatility suggests that bears are holding the tight grip on the market, experts said, adding option band signifies a wider trading range in between 10,800 to 11,171 zones.
According to Pivot charts, the key support level is placed at 10,842.5, followed by 10,754.5. If the index starts moving upwards, key resistance levels to watch out are 11,026.3 and 11,122.1.
The Nifty Bank index closed at 25,119.85, up 77.70 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 24,907.77, followed by 24,695.73. On the upside, key resistance levels are placed at 25,343.27, followed by 25,566.73.
Here are the top stock trading ideas which can give good returns in the near term:
Aditya Agarwal of Way2Wealth Brokers
Buy ITC around Rs 295 with target at Rs 315 and stop loss at Rs 287
Sell Titan Company around Rs 820 – 825 with target at Rs 740 and stop loss at Rs 861
Sell V-Guard Industries around Rs 180 – 182 with target at Rs 150 and stop loss at Rs 194
Rajesh Agarwal of AUM Capital
Buy Indian Hotels with stop loss at Rs 130 and target of Rs 144
Buy Can Fin Homes with stop loss at Rs 228 and target of Rs 248
Buy Cyient with stop loss at Rs 733 and target of Rs 753
Buy Axis Bank with stop loss at Rs 599 and target of Rs 630
Buy Welspun Corp with stop loss at Rs 119 and target of Rs 133
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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