“This correction might be a decent opportunity to re-accumulate blue-chip stocks” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management.
The Nifty ended Thursday 0.54 percent lower at 10,682.70. It remained volatile throughout the session before ending with a bearish candle. Its early morning positive opening failed to breakout the critical resistance of 10,800. A fall from the day's high of 10,777, followed by a closing below the critical support of 10,700 implies that the correction may deepen further to 10,660-10,600. So, 10,700 may now act as critical resistance.
On the Nifty hourly chart, it closed below its 100-day exponential moving average (EMA) placed around 10,710. Hence, the weakness is likely to persist in today’s session as well. Downside supports are placed around 10,660 and 10,600, while the 200-day EMA is placed around 10,620 levels.
Nifty patterns on multiple timeframes show it ended the session on a weaker note below 10,700. Hence, the correction may deepen further to 10,660-10,600. Traders and investors are advised to wait for a decent buying opportunity.
The Bank Nifty ended Thursday 0.41 percent lower at 26,073.80. It closed the session with another bearish candle. Closing bellow 26,100 suggests that the next leg of correction towards 25,900 and 25,800 is likely. Upside major resistance is now placed around 26,200 levels.
Based on a thorough technical study, the research firm recommends a sell on Bharti Airtel:
Bharti Airtel | Rating: Sell | Target: Rs 340, stop loss: Rs 385, Return: 8%
The stock ended the session below the previous bullish reversal point around Rs 370 levels. Also, it is trading below the 200 weekly EMA placed around Rs 380 levels. Hence, decline is likely to continue further towards Rs 340 levels.
Based on above mentioned observations, the firm recommends Bharti Airtel as a sell on rise for the short term target of Rs 340.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.