Podcast | Stock picks of the day: FII data indicates caution, Nifty to see resistance at 10,400-10,450

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26 Aug, 2025 12:21

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Shitij Gandhi

As we are approaching mid-October, the derivatives data is still not showing any sign of improvement near support levels of 10,275 and 10,200.

The continuous short build-up by foreign investors (FIIs) indicates caution ahead. Currently, 10,000 levels will act as a major support level for the Nifty where maximum OI has been observed in Puts with more than 40 lakh shares.

However, if data does not improve around current levels we may see the unwinding of a long position and selling pressure in the index.

Call writers were active in 10,300, 10,400 and 10,500 Call strike which indicates limited upside. This clearly indicates a lack of buying interest and discomfort in the market.

On bounce, the index will face strong resistance at 10,400-10,450 levels. Overall data is negative and more weakness can be seen in the coming days. However, on technical ground, the Nifty has next support at 10,100-10,050 spot levels.

Here is a list of top three stocks which could give 6-7% return in one month:

ACC: Sell| Target: Rs 1390| Stop Loss: Rs 1535| Return 6%

The stock surpassed its 200-days exponential moving average (EMA) on the daily interval in the month of August but could not manage to hold on to its gains and slid below the crucial support of 1500 levels.

The stock has also formed a ‘Head and Shoulder’ pattern on the daily interval and has given a breakdown below its neckline which is clearly a bearish signal.

Traders can take a short position in the range of Rs 1465-1480 for the downside target of Rs 1390 levels with a stop loss above Rs 1535.

Exide Industries: Sell| Target: Rs 229| Stop Loss: Rs 258| Return 7%

After testing 300 levels in the recent past, the stock has been maintaining its downtrend and trading in a downward sloping channel on the daily charts. The stock has been forming lower highs and lower lows which is a bearish sign.

This week we saw a fresh breakdown in prices as the stock slid below its 200-days exponential moving average (EMA) on the daily charts with marginally higher volume.

The negative divergence on the secondary indicators like RSI and Stochastic are also pointing towards more downside in prices moving forward.

Traders can take a short position in the range of Rs 243-247 for the downside target of Rs 229 with a stop loss above Rs 258.

Hindustan Unilever: Sell| Target: Rs 1424| Stop Loss: Rs 1565| Return 6%

The stock has been badly hammered down from Rs 1800 levels to get support at its 100-days exponential moving average (EMA) on the daily interval which is placed at 1620 levels.

However, from the last four weeks, prolong consolidation in prices has kept the stock in the range of 1570-1670.

This week we have observed consolidation breakdown below the key support of 1560 along with descending triangle breakdown which is a bearish signal for the prices moving forward.

Traders can take a short position in the range of 1505-1515 for the downside target of 1424 levels with a stop loss above 1565.

Disclaimer: The author is a Senior Research Analyst, SMC Global Securities Ltd. The views and investment tips expressed by investment experts on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.