Jaydeb Dey
The Nifty ended the previous session 0.52 percent lower at 10,633.30. It opened flat and touched an intraday high of 10,717, before falling below its early-morning low, amid weak global cues.
The index failed to sustain above 10,700 for the second consecutive session, ending the session with a bearish Marubzu candle closer to its day’s low of 10,616.10.
Selling pressure may take the benchmark index below its 30-day exponential moving average placed at 10,600, and may test its downside support levels placed at 10,560 and 10,500.
On the hourly chart, the Nifty falling below its 200-day EMA, placed at 10,605, may initiate another correction towards 10,560 and 10,500. In the case of an intraday pullback, 10,600 will act as a critical resistance.
Patterns across frames show that the Nifty failed to sustain above its critical support placed at around 10,700 for the second consecutive session, and ended closer to its 30-day EMA.
Falling below its 30-day EMA may leave the Nifty in a deadlock for a few sessions. Hence, cautious trading is advised.
The Bank Nifty ended the previous session 1.35 percent lower at 26,254.80. Immediate resistance for the index is placed at around 26,350, while critical support is placed at around 26,000.
Based on a thorough technical study, we recommend Bharti Airtel, which could return up to 5 percent in the short term.
Bharti Airtel | Rating: Sell | Target: Rs 355 | Stop loss: Rs 385 | Return: 5 percent
The stock has been in a strong downtrend since last several weeks. Hence, pullback towards critical resistances might be considered as a decent buying opportunity. 30 EMA on daily chart is placed around 385 levels and may act as the critical resistance.
Based on above mentioned observations, we recommend BHARTI AIRTEL as a Sell on rise for the short-term target of 355.
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.
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