The Nifty 50 underwent a sharp correction during the day amid a strong sell-off on February 28. The index dropped below the 22,000 mark, indicating a growing weakness. It, however, managed to close just above the 21-day EMA (exponential moving average) of 21,948 on the daily timeframe.
Observing the daily chart, the index has been navigating within a rising channel. A decline below 21,950 could potentially trigger a correction towards 21,800 in the near term. Conversely, a sustained trade above 21,950 might spur a recovery in the index towards 22,100.
Bears pulled Bank Nifty below 46,000 as the bulls were unable to shield the index from dropping below 46,500. Wednesday's selling pressure has pushed the index below the crucial short-term moving average as well.
The sentiment appears negative, with the index potentially moving towards 45,700/45,300 in the near term. Resistance is likely at 46,100.
Here are two buy calls and one sell call for short term:
Max Financial Services: Buy | Stop-Loss: Rs 964 | Stop-Loss: Rs 939 | Target: Rs 1,010/1,030 | Return: 7 percent
The stock has experienced a downward consolidation breakout on the daily chart. Before the recovery, the stock found support around the previous consolidation level.
The stock has regained the 21EMA, indicating a resumption of the bullish trend. On the upside, it may move towards Rs 1,010/1,030. Meanwhile, support is situated at Rs 939.
Havells India: Buy | LTP: Rs 1,534 | Stop-Loss: Rs 1,500 | Target: Rs 1,585 | Return: 3 percent
The stock has given a swing high breakout on the daily chart. Besides, the stock has been continuously trading above the critical moving average. On the upside, it may move towards Rs 1,585. Meanwhile, support is situated at Rs 1,500.
Tech Mahindra: Sell | LTP: Rs 1,286 | Stop-Loss: Rs 1,300 | Target: Rs 1,220 | Return: 5 percent
The stock has fallen below the recent consolidation. In addition, the stock has fallen below critical short term moving average. On The lower end, it might move towards Rs 1,220. On the higher end, resistance is placed at Rs 1,300.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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