Nifty Forms Bearish Candle, Lower Top

Mumbai: On Monday, the benchmark indices continued weak momentum as BSE Sensex was down by 640 point. Among sectors, except IT, all the major sectoral indices registered selling pressure at higher levels, but Media index lost the most shed over 3.70 per cent.

Technically, after a long time market slipped below 50-day SMA (Simple Moving Average).

It also formed bearish candle on daily charts and holding lower top formation on intraday charts, which is largely negative.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, the larger market texture is weak, but due to temporary oversold conditions, we could see non-directional activity in the near future. For the day traders now, the 80,700 and 80,500 would be the key support zones, while 81,800 and 50-day SMA or 82,000 could be the key resistance areas for the bulls. Short-term traders should remain cautious and be very selective as there is a risk to get trapped at lower levels.

Prashanth Tapse, senior V-P (research), Mehta Equities says: “A combination of expensive valuations and foreign fund outflows have been driving investors to cut their exposure in Indian stocks, with banking, metals, telecom, oil & gas bearing the maximum brunt despite optimism across other Asian indices.Even the exit poll outcome of the two states are not in favour of the ruling government at the center, which has further dampened the investor sentiment.”

STOCK PICKS

Hindustan Copper (HINDCOPPER) | Trade: SELL | CMP: Rs311 | SL: Rs325 | Target: Rs300

Analysis: Hindustan Copper’s RSI at 40 indicates weakening momentum, suggesting a potential bearish trend. The stock has faced selling pressure around the current levels, making it suitable for a short-sell at Rs311. A stop loss at Rs325 helps mitigate risk in case of upward movement. The target of Rs300 aligns with the stock’s technical weakness and potential downside. This trade is recommended for short-term bearish traders.

BalrampurChini (BALRAMCHIN) | Trade: BUY | CMP: Rs627 | SL: Rs600 | Target: Rs691

Analysis: BalrampurChini is showing strong positive momentum, with an RSI of 58 supporting a continued upward trend. The stock is recommended for buying at Rs627, with a stop loss at Rs600 to manage downside risks. The target of Rs691 reflects potential further gains, given the stock’s technical strength and overall positive trend. This trade suits those looking for short-term bullish opportunities.

(Source: Riyank Arora, technical analyst at Mehta Equities)

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs