Stocks retreated sharply after 10 consecutive sessions of gains after a slew of negative news flows from across the globe spooked investors, triggering wide-spread selling. On the day of weekly expiry of index contracts, Nifty and other indices witnessed sharp sell-off.
While Nifty ended 2.52 percent lower, Bank Nifty erased the entire previous session gains to close at 23000 level, which is over 1,000 points fall from the day’s highest level. Today, Nifty failed to follow continuation pattern and that triggered extreme weakness in the market. Nifty is heading towards 10500 on the minimum side.
On the higher side, 11780/11800 would be key hurdles and traders should look for selling short on the Nifty with a final stop loss at 11850.
Shrikant Chouhan, Executive Vice President – Technical Research
Pidilite Industries: Sell
- CMP: 1476.45
- Target: 1430
- Stop Loss: 1500
- Strong Bar Reversal formation on daily charts suggest high chances of further weakness from current levels.
Hero Moto Corp: Sell
- CMP: 3314.3
- Target: 3210
- Stop Loss: 3360
- Double top pattern and Hammer reversal formation indicates high chances of short term correction.
Axis Bank: Sell
- CMP: 462.6
- Target: 445
- Stop Loss: 470
- Strong reversal formation near important retracement level along with overbought stochastic cycle.
Tech Mahindra: Buy
- CMP: 812.4
- Target: 840
- Stop Loss: 800
- Post strong uptrend rally currently stock is witnessing short term correction. Currently trading near important support level. The texture indicates high chances of fresh uptrend wave from current levels.
Sahaj Agrawal, DVP-Derivatives, Research
Buy OCT FUT Biocon at 430
- Target: 470
- Stop Loss: 410
- Trend Line Support seen on Daily Charts at 430
Sell NIFTY OCT 12000CE at 55
Sell OCT 11400PE at 90
- Premium Inflow: 145
- Target: 40
- Stop Loss: 200
- Nifty is expected to remain in a range between its immediate resistance at around 12050 & the support area of 11400 in the near term. A Short Strangle is apt.
Forex & Interest Rate Technical
Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives
USDINR: Sell between 73.80/90
- Target: 73.10/72.80
- Stop Loss: 74.30
Ravindra Rao, VP- Head Commodity Research
|Silver (Dec)||MCX||Sell at 62000/62200
Stop Loss: 63000
|Crude Oil (Oct)||MCX||Sell at 3030/3050
Stop Loss: 3100
|Copper (Oct)||MCX||Sell at 527/528
Stop Loss: 531
|Soybean (Nov)||NCDEX||Buy at 4080/4050
Stop Loss: 4000