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The Nifty50 started off the week on negative note, extending losses for fifth consecutive session on Monday. The index after gap opening immediately slipped into red and closed below psychological 11,000 levels for first time since July 19, forming bearish candle on the daily charts which also resembles a ‘Bearish Beld Hold’ kind of pattern.
A ‘Bearish Belt Hold’ pattern is formed when the opening price becomes the highest point of the trading day (intraday high) and the index declines throughout the trading day making up for the large body. The candle will either have a small or no upper shadow and a small lower shadow.
Fear of liquidity crunch in NBFCs, trade tensions between US and China, rising crude oil prices and weakening rupee weighed on sentiment.
All sectoral indices closed sharply lower barring IT that gained more than 2 percent. The Nifty Midcap index has fallen more than frontline indices, declining 2.77 percent.
The Nifty50 after opening higher at 11,164.40 hit an intraday high of 11,170.15, but immediately wiped out opening gains and extended losses as the day progressed. The index has broken 11,000 levels and hit a day’s low of 10,943.60, before closing below 100-day moving average, down 175.70 points at 10,967.40.
The 50-share NSE index lost 793 points or 6.7 percent from its record high of 11,760 seen on August 28.
India VIX moved up sharply by 14.19 percent to 17.74 and it is now at highest levels in last seven months. Rising volatility with falling Put Call Ratio suggests that bears are holding the tight grip on the market, experts said.
According to Pivot charts, the key support level is placed at 10,883.93, followed by 10,800.47. If the index starts moving upwards, key resistance levels to watch out are 11,110.54 and 11,253.67.
The Nifty Bank index closed at 24,925.20, down 671.70 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,699.97, followed by 24,429.63. On the upside, key resistance levels are placed at 25,445.17, followed by 25,920.03.
In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns:
Ashwani Gujral of ashwanigujral.com
Buy Tata Consultancy Services with a stop loss of Rs 2180, target of Rs 2260
Buy HCL Technologies with a stop loss of Rs 1080, target of Rs 1140
Sell L&T Finance Holdings with a stop loss of Rs 134, target of Rs 122
Sell Indian Bank with a stop loss of Rs 261, target of Rs 246
Sell Manappuram Finance with a stop loss of Rs 80, target of Rs 72
Sudarshan Sukhani of s2analytics.com
Sell Bajaj Auto with a stop loss at Rs 2800 and target of Rs 2650
Sell Shriram Transport Finance Corporation with stop loss at Rs 1155 and target of Rs 1100
Sell ICICI Prudential Life Insurance with stop loss at Rs 342 and target of Rs 336
Buy HCL Tech with stop loss at Rs 1080 and target of Rs 1125
Buy United Breweries with stop loss at Rs 1300 and target of Rs 1375
Mitessh Thakkar of mitesshthakkar.com
Buy Aurobindo Pharma with a stop loss of Rs 720 and target of Rs 755
Sell Equitas Holdings around Rs 131 with stop loss of Rs 136 and target of Rs 120
Sell Pidilite Industries around Rs 1100 with stop loss of Rs 1120 and target of Rs 1060
Buy Reliance Industries with a stop loss of Rs 1210 and target of Rs 1265
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com/CNBC-TV18 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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