Positive global cues, short covering and a bit of value buying in beaten down stocks helped the market snap a five-day losing streak on Tuesday. The index made a bullish candle on the daily charts, resembling a Piercing Pattern.
Piercing Pattern is generally called as a bullish reversal pattern. It occurs in a downtrend and is comprised of two candlesticks. The first candlestick is a long black candle, accompanied by high volume. The next candlestick makes a lower low, but then rallies to close above the midpoint of the first candlestick, but not above the opening of that candle. This pattern is one of the first signs that a potential bullish reversal is in play.
In a perfect piercing pattern, opening will be below previous day’s closing price and the close will be above the mid-point of previous sessions candle body but Tuesday’s opening was almost close to Monday’s closing price.
The Nifty50 after opening flat fell sharply and hit an intraday low of 10,882.85. It managed to recoup losses in morning trade itself amid volatility but slipped into red again in afternoon followed by sharp recovery in last hour of trade which helped the index climb above 11,000 levels to hit day's high of 11,080.60. The index closed 100.10 points higher at 11,067.50.
According to Pivot charts, the key support level is placed at 10,940, followed by 10,812.5. If the index starts moving upwards, key resistance levels to watch out are 11,137.8 and 11,208.1.
The Nifty Bank index closed at 25,330.35, up 360 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 24,870.04, followed by 24,409.77. On the upside, key resistance levels are placed at 25,598.74, followed by 25,867.17.
In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns:
Ashwani Gujral of ashwanigujral.com
Buy L&T Finance Holdings with a stop loss of Rs 128, target of Rs 140
Buy Bajaj Finance with a stop loss of Rs 2250, target of Rs 2400
Buy Britannia Industries with a stop loss of Rs 5700, target of Rs 5900
Buy Maruti Suzuki with a stop loss of Rs 7950, target of Rs 8100
Buy Kotak Mahindra Bank with a stop loss of Rs 1160, target of Rs 1220
Sudarshan Sukhani of s2analytics.com
Buy Divis Labs with stop loss at Rs 1365 and target of Rs 1425
Buy Hindustan Unilever with stop loss at Rs 1620 and target of Rs 1680
Buy Infosys with stop loss at Rs 716 and target of Rs 746
Sell Bharti Infratel with stop loss at Rs 275 and target of Rs 260
Sell Exide Industries with stop loss at Rs 260 and target of Rs 250
Mitessh Thakkar of mitesshthakkar.com
Buy Hindustan Zinc with a stop loss of Rs 298.9 and target of Rs 312
Buy Oil India Limited with a stop loss of Rs 215 and target of Rs 228
Buy HCL Tech with a stop loss of Rs 1099 and target of Rs 1146
Sell Container Corporation of India with a stop loss of Rs 623 and target of Rs 590
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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