Nifty fell for the third consecutive session on Tuesday to close at 15,622. In these three sessions, Nifty has lost almost 400 points, while Bank Nifty has lost more than 1,600 points. Nifty has reached very near to its 50 days EMA, which could provide support at 15,550 odd levels. However, on the upside, 15,700-15,750 would act as strong resistance in days to come. It would be advisable to utilise the resistance levels to initiate fresh short sells.
Buy TCS (Rs 3,203): | Target Rs 3,360 | Stop loss: Rs 3,103
The stock has been finding support around Rs 3,150 odd levels for the last seven sessions. It remained resilient amid recent market weakness. On July 20 2021, the stock formed a “Hammer” candlestick pattern, which signs short term trend reversal. It has witnessed a healthy correction from the previous swing high of Rs 3,387 and now seems set to bounce back. IT sector is also expected to outperform for the next couple of weeks.
Sell HERO MOTOCORP (Rs 2,843): | Target Rs 2,725 | Stop loss Rs 2,900
The stock has broken down below the last six week’s price consolidation. It has violated the crucial support of the upward sloping trend line on the daily chart. The auto sector has been underperforming for the last couple of weeks. Currently, the stock is trading below 20, 50, 100 and 200 days EMA. Daily DMI, RSI and MACD indicators have turned bearish on the daily charts.
Disclaimer: Vinay Rajani is technical research analyst at HDFC securities; views expressed are personal
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.