“Trend remains negative as long as it trades below 10,500.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.
Moneycontrol NewsJaydeb Dey
The Nifty in the previous session ended 1.01 percent lower at 10,430.35. It turned lower from the day’s high of 10533.55 ending the session nearer to critical support placed around 10,420, forming a bearish body candle.
Candle pattern suggests that this bearish momentum is likely to gain further momentum if the support around 10,420 breaks down decisively. Next support is placed around 10,380. Intraday pullback towards 10,450 and 10,500 is likely to find aggressive sellers. Hence, staying cautious on rise is advised.
On the Nifty hourly chart, it continues trading below all the moving averages. Hence, bearish momentum is likely to continue. Successive closing below 10,500 implies it may once again find aggressive sellers on rise around 10,450 and 10,500 in case of intraday pullback.
The Nifty's patterns on multiple time frames show it is currently trading below 10,500 levels. Hence, bearish momentum is likely to persist. Downside immediate supports are placed around 10,420 and 10,380.
The Bank Nifty in the previous session ended 0.36 percent lower at 25,684.95.70. It ended the session below previous three sessions low with a bearish shooting star candle. Hence further downfall towards 25,600 is likely.
Based on thorough technical study, the research firm recommends JK Tyre & Industries which can give up to 7 percent return in the near short term:
JK Tyre and Industries | Rating: Sell | Target: Rs 128, stop loss: Rs 143, Return: 7%
The stock ended the session with a midterm upward trend line breakdown. Ending the session with a bearish candle coupled with down trending RSI makes the bearish case stronger.
Based on above-mentioned observations, the firm recommends JK Tyre and Industries as a sell on rise for the short term downside target of Rs 128.Disclaimer: The author is Technical Analyst at Stewart & Mackertich Wealth Management Ltd. The views and ideas expressed above may have been suggested to the clients of Stewart & Mackertich Wealth Management Ltd. It is advised that investors/traders should consult with their Certified Experts before taking any investment decision.