The market continued to see relentless selling pressure between October 1 and 5, with the Nifty falling 5.6 percent to close a tad above 10,300 levels. The surprise move on rates by Reserve Bank of India's (RBI's) Monetary Policy Committee (MPC), the consistent fall in the rupee and crude volatility attributed to the selling pressure.
The Nifty 50 closed at a six-month low on October 5, making a large bearish candle on the daily as well as weekly charts.
Experts said the sharp fall in the last few sessions indicated that there could be a relief rally in the coming week, but if it corrects further it could break the psychological 10,000 level as well.
After opening lower at 10,514.10, the Nifty 50 gradually extended losses as the day progressed to fall below 10,300 and hit an intraday low of 10,261.90 in late trade. The index closed 282.80 points down at 10,316.50.
India VIX moved up by 4.32 percent to 19.73 levels. Volatility is not cooling down which is not giving the relief to bulls and suggests a tight bear grip in the market, experts said.
According to Pivot charts, the key support level is placed at 10,205.37, followed by 10,094.23. If the index starts moving upwards, key resistance levels to watch out are 10,484.17 and 10,651.83.
The Nifty Bank index closed at 24,443.45, down 375.85 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 24,102.66, followed by 23,761.93. On the upside, key resistance levels are placed at 24,932.16, followed by 25,420.93.
In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns:
Ashwani Gujral of ashwanigujral.com
Buy Infosys with a stop loss of Rs 720, target of Rs 745
Buy Tata Consultancy Services with a stop loss of Rs 2080, target of Rs 2200
Sell Dewan Housing Finance with a stop loss of Rs 281, target of Rs 265
Sell L&T Finance Holdings with a stop loss of Rs 124, target of Rs 112
Sell Indian Bank with a stop loss of Rs 234, target of Rs 220
Sudarshan Sukhani of s2analytics.com
Sell Can Fin Homes with stop loss at Rs 240 and target of Rs 218
Sell Cummins India with stop loss at Rs 665 and target of Rs 635
Sell Sun TV with stop loss at Rs 625 and target of Rs 575
Buy HCL Tech with stop loss at Rs 1070 and target of Rs 1100
Buy Sun Pharma with stop loss at Rs 590 and target of Rs 620
Mitessh Thakkar of mitesshthakkar.com
Sell Bajaj Auto around Rs 2560 - 2570 with stop loss of Rs 2616 and target of Rs 2460
Sell Balkrishna Industries with a stop loss of Rs 1020 and target of Rs 970
Buy Bata India with a stop loss of Rs 844 and target of Rs 890
Sell Chennai Petroleum Corporation around Rs 260 with stop loss of Rs 268.5 and target of Rs 243Disclaimer: 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.