The market corrected sharply for the second trading session in a row on October 19, with the Sensex falling more than 450 points as bears further tightened their grip on Dalal Street. Reliance's mixed Q2 earnings, liquidity crisis in NBFCs, H1-B visa issue and weak global cues weighed on the market.
The Nifty 50 opened sharply lower at 10,339.70 and extended sell-off as the day progressed. It hit an intraday low of 10,249.60 in the afternoon, followed by a bit of recovery in the last hour of trade. The index closed 149.50 points lower at 10,303.50.
The Nifty 50 formed the small bearish candle (as the gap between opening and closing price was only 36 points), which resembles a "Spinning Top" kind of indecisive pattern.
India VIX moved up by 10.05 percent at 19.78. A spurt in volatility after the dips of the last few sessions suggests that upside could be restricted again in the market.
According to Pivot charts, the key support level is placed at 10,242.03, followed by 10,180.57. If the index starts moving upwards, key resistance levels to watch out are 10,372.53 and then 10,441.57.
The Nifty Bank index closed at 25,085.80, down 102.80 points. The important Pivot level, which will act as crucial support for the index, is placed at 24,913.04, followed by 24,740.27. On the upside, key resistance levels are placed at 25,268.24, followed by 25,450.67.
Here are the top stock trading ideas which can give good returns in the near term:
Dinesh Rohira of 5nance.com
Buy ITC with target of Rs 306 and stop loss at Rs 275
Buy NIIT Technologies with target at Rs 1,288 and stop loss at Rs 1,220
Sell Avenue Supermarts with target at Rs 1,201 and stop loss at Rs 1,268
Rajesh Agarwal of AUM Capital
Buy Torrent Power with stop loss at Rs 228 and target of Rs 248
Buy Jubilant Foodworks with stop loss at Rs 1230 and target of Rs 1315
Buy Graphite India with stop loss at Rs 1010 and target of Rs 1070
Buy Biocon with stop loss at Rs 644 and target of Rs 678
Buy Havells India with stop loss at Rs 579 and target of Rs 620
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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