The Nifty, which opened on a muted note extended losses in the second half of the trading sessions after it breached most of its short-term moving averages on the lower side. The Nifty opened at 9,984 and rose marginally to touch its intraday high of 9,988 but then bears took control and push the index by over 100 points to touch its intraday low of 9,861 — which made a long lower shadow. It finally closed 61 points lower at 9,912.
The Nifty closed at 9,912.85 on Monday. According to Pivot charts, the key support level is placed at 9,853.1, followed by 9,793.35. If the index starts to move higher, key resistance levels to watch out are 9,980.5 and 10,048.15.
The Nifty Bank closed 197.15 points lower at 24,236.85 on Monday. Important Pivot level, which will act as crucial support for the index, is placed at 24,109.03, followed by 23,981.27. On the upside, key resistance levels are 24,411.93, followed by 24,587.07.
The Nifty50 futures on the Singapore Stock Exchange were trading 27 points higher at 9,954 indicating a flat opening for the domestic market.
According to Prakash Gaba of prakashgaba.com, some more downside is not ruled out. There is a stiff resistance at 10005 and crucial support still exists at 9840. Bank Nifty on the other hand has support at 24100 and resistance at 24511.
Here are the stocks which are good buys today:
Coal India: Indicator Buy | Rating: Buy | Target: Rs 255, stop loss: Rs 240
ONGC: Bounce from support | Rating: Buy | Target: Rs 166, stop loss: Rs 160Disclaimer
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