Experts are of the view that as long as Nifty holds above 11050 zones then buying interest could emerge towards 11250 zones while on the downside support exists at 10900-10880 zones.
Let’s look at the final tally on D-Street – the S&P BSE Sensex fell 24 points to 37,663 while the Nifty50 rose 6 points to close at 11,101.Trends in global markets suggest that Indian markets could trade flat, but the big move could come post the outcome of the RBI policy meeting.
Experts are of the view that as long as Nifty holds above 11,050 zones then buying interest could emerge towards 11,250 zones while on the downside support exists at 10,900-10,880 zones.
Stocks including HDFC Ltd, Tata Steel, and Axis Bank were in focus on Wednesday.
We have collated views of experts on what investors should do on August 6:
Expert: Ashish Chaturmohta Head of Technicals and Derivatives, Sanctum Wealth Management
The stock has been in an uptrend forming a higher top and higher bottom on the daily chart since May low of Rs 262. After the last few sessions of consolidation around the 200-day moving average, the stock is witnessing fresh momentum.
The up moves are seeing high volumes which indicate buying participation in the stock. The whole sector is also seeing interest.Now, the stock can rally towards Rs 430 and above that Rs 451 levels. On the downside, the recent breakout level of Rs 378 will act as support for the stock and below that, the next support is seen at Rs 360.
For more than four months, the stock has been trading in a broad range of Rs 1,948-1,473 levels. However, over the last couple of months, this range has narrowed to Rs 1,710-1,948.
Now, the price has seen a bounce from Rs 1,710 levels and is holding above it. Above Rs 1,948, the stock will see a breakout and move towards Rs 2,150 levels. On the downside, a break below Rs 1,710, could take the stock towards the low of Rs 1,473.
For the last four months, the stock has been trading in a range of Rs 486-286 odd levels on the daily chart. It has been forming higher lows, thus leading to an ascending triangle pattern on the daily chart.
Volumes were also indicating accumulation in the stock at lower levels. After an attempt to break out in late July price has again retreated back into the range.
The rising support trend line which is drawn by connecting lows Rs 286-333 comes around Rs 402 which is now the key support for the stock.
Thus, it is likely to trade between Rs 486-400 levels. On the upside stock needs to cross and sustain above Rs 486, to rally towards the next resistance level of Rs 523 and Rs 580. Breaking below Rs 400 further declines towards Rs 360 can be seen.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.