Bulls failed to keep the momentum going as Nifty came under pressure as soon as it came close to its crucial resistance level of 10,080 and made a ‘Bearish Engulfing Pattern’ on the daily candlestick charts on Wednesday. The Nifty opened at 10,042.60 and made a high of 10,067.25 which resulted in small upper shadow. It pared gains and corrected below 9,900 to record its intraday low of 9,984.80 which resulted in small lower shadow.
The Nifty closed at 9,984.8 on Wednesday. According to Pivot charts, the key support level is placed at 9,938.0, followed by 9,891.2. If the index starts to move higher, key resistance levels to watch out are 10,049.4 and 10,114.
The Nifty Bank closed at 24,107.4. Important Pivot level, which will act as crucial support for the index, is placed at 23,954.33, followed by 23,801.27. On the upside, key resistance levels are 24,360.33, followed by 24,439.73.
The Nifty50 futures on the Singapore Stock Exchange were trading 28.50 points higher at 10017 indicating a flat to positive opening for the domestic market.
According to Technical Analyst Prakash Gaba of prakashgaba.com, the momentum seems to be shifting and so all rallies needs to be sold into until 10074 is taken out. The crucial support for the Nifty is at 9922-9877 and the resistance is at 10035. On the other hand, Bank Nifty has support at 24000 and resistance at 24534.
Below are the stocks which are good sells today:
Bank of Baroda: Indicator Sell | Rating: Sell | Target: Rs 130, stop loss: Rs 142
Dewan Housing Finance: Breakdown | Rating: Sell | Target: Rs 500, stop loss: Rs 550
"Hindalco Industries is certainly looking good to me. I had a target of Rs 260; it is already closer to that, it has already moved up. I would extend the target to around Rs 263-265 zones, stop loss will be Rs 252."
"The stock that looks weak is Asian Paints. It can see a slide to maybe levels closer to Rs 1,140 zones, keep stop loss above Rs 1,164."
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