The last time such large bearish candles were visible on a nifty chart was back in 2020. We reiterate a bearish view once again for this week as well. Markets and the sentiment looks weak.
The 17,400 is the next major support zone for the broad Nifty index and we believe that over the coming weeks that too will be broken.
Nifty50 |
Bank Nifty |
Nifty FMCG
The FMCG sector is showing signs of a forming a medium term bottom and we could see a quick rebound from these levels.
Nifty FMCG |
It could retest the 39,200 levels and at that time it will be interesting to see if meets with resistance or not.
Nifty IT
Although this sector has taken support near the 34400 levels, the sector overall looks weak on the charts and we would advise investors to wait for further downside before re-looking at this sector.
Nifty IT |
Derivative Outlook
Nifty current month future closed with a premium of ~31 points to its spot. Next month's future is trading at a premium of around ~90 points.
We saw open interest reduction of nearly 2.05% in Nifty and considering the price action it clearly hints strong selling during the week.
Long Formation
Long Formation |
Short Formation
Short Formation |
Top 5 Recommendations for the week
BRITANNIA
BRITANNIA is trading in consolidation zone since last week. On daily timeframe it had formed lower low lower high pattern formation indicating bearishness and breakdown of consolidation zone. Below 3605 is a good opportunity to go short.
Short BRITANNIA below 3605 CMP 3628.25
Target 1 - 3535
Target 2 - 3465
Target 3 - 3395
Stop loss: 3710
CADILAHC
CADILAHC is trading near its previous support range. It has taken the resistance from its previous support level which indicates some bearishness in the stock. Below 485 will be a good opportunity to go short.
Short CADILAHC below 485 CMP 490
Target 1 - 473
Target 2 - 462
Target 3 - 450
Stop loss: 508
COLPAL
COLPAL is trading in the range of 1540 and 1484 since last week. On Breakdown of the range will have a good down side momentum. Below 1485 is a good opportunity for shorting.
Short COLPAL below 1485 CMP 1509.75
Target 1 - 1465
Target 2 - 1445
Target 3 - 1425
Stop loss: 1525
INDIAMART
INDIAMART is trading at its important support level. It had taken multiple time support in the support range of 6750 and 6950 level. Currently it is trying to take support at the important support level. Above 7540 level will have a good buying opportunity.
Buy INDIAMART above 7,540 CMP 7,330.90
Target 1 - 7990
Target 2 - 8446
Target 3 - 8899
Stop loss: 6860
HDFCAMC
HDFCAMC is trading near its previous support level. It is resisting at the previous support level indicating bearishness in the stock. Below 2600 level good opportunity for shorting.
Short HDFCAMC below 2600 CMP 2627.35
Target 1 - 2567
Target 2 - 2535
Target 3 - 2502
Stop loss: 2665
(Gaurav Udani is Founder & CEO of Thincredblu Securities. He tweets @Udanii)
