Indian markets fell for the fourth consecutive day on September 22 with Nifty slipping to near 11,150, with constant selling seen in Bank Nifty.
Among the sectors, IT and pharma witnessed some buying interest, while banking, financials, metal and energy counters witnessed sharp sell-off.
On the derivative front, call writers were active at 11,200, 11,300 and 11,400 strikes while put unwinding was witnessed at 11,200 strikes.
Technical setup and derivative data suggest that selling pressure may persist as far Nifty is trading below 11,400.
On the downside, 11,000 would act as an immediate support for the market, below which further long unwinding could be witnessed which can further drag the index towards 10,850 levels as well.
Traders are advised to remain cautious as uncertainty on the global front could further dampen the sentiment on local bourses as well.
Here are two buy calls for the next 2-3 weeks:
This stock has been consistently moving higher on daily and weekly charts with prices trending in a rising channel with the formation of the higher high and higher low patterns.
The stock has given a consolidation breakout above Rs 100 last week after witnessing a sideways move of nearly five weeks within the range of Rs 80 to Rs 100.
At the current juncture, rising volumes along with a rise in prices suggest further upside in the prices in the upcoming sessions.
After witnessing a consolidation breakout above Rs 2,300 in the recent past, the stock has been consistently moving higher and tested its all-time high of Rs 2,555 in Tuesday’s session.
On the derivatives front, a long build-up in the prices has been observed which could trigger further upside momentum in the prices.
Secondary oscillators are also showing positive divergences on the charts.
(The author is Senior Technical Analyst at SMC Global Securities)
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