The market started off the week on a negative note with the Nifty 50 losing all its opening gains in the morning trade and closing sharply lower amid volatility despite strong global cues on October 22.
Monday's intraday price action is clearly favouring the bears as two attempts by the bulls, during the course of the day, succumbed to the pressures of bears who succeeded in pushing the indices to much lower levels, experts said.
The index closed below the psychological 10,300 levels and formed large bearish candle which resembles a 'Bearish Belt Hold' kind of pattern on the daily charts.
The Nifty 50 saw a strong gap opening at 10,405.85, but erased all gains in the morning and turned volatile. The index then slipped into the red in last hour of trade to hit an intraday low of 10,224. It closed below the immediate support levels, down 58.20 points lower at 10,245.30.
India VIX moved up by 7.87 percent to 21.34. The spurt in volatility suggests upside could be restricted. Recent high of VIX is at 21.76 and above that it could even head towards 24 levels.
According to Pivot charts, the key support level is placed at 10,176.63, followed by 10,108.07. If the index starts moving upwards, key resistance levels to watch out are 10,361.13 and then 10,477.07.
The Nifty Bank index closed at 25,078.60, down 7.20 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,898.34, followed by 24,718.07. On the upside, key resistance levels are placed at 25,381.84, followed by 25,685.07.
Here are the top stock trading ideas which can give good returns in the near term:
Jayant Manglik of Religare Broking
Buy Aurobindo Pharma with target at Rs 820 and stop loss at Rs 730
Sell Canara Bank Nov Futures with target at Rs 198 and stop loss at Rs 224
Sell ONGC Nov Futures with target at Rs 148 and stop loss at Rs 166
Rajesh Agarwal of AUM Capital
Buy ICICI Bank with stop loss at Rs 320 and target of Rs 335
Buy Hindustan Oil Exploration with stop loss at Rs 138 and target of Rs 146
Buy Torrent Pharma with stop loss at Rs 1580 and target of Rs 1630
Buy Bharat Heavy Electricals with stop loss at Rs 72 and target of Rs 77
Buy Syngene International with stop loss at Rs 582 and target of Rs 610
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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