The Nifty, which started with a small gap on the higher side inearlytrade on Thursday, failed to garner momentum as bears took control of D-Street in the first 15-minute of trade.
The index witnessed strong selling pressure throughout the session, which resulted in it forming a Bearish Belt Hold pattern on the daily candlestick charts.
On Thursday, the Nifty opened at 10,775.60 and rose marginally to 10,777.25, because of which it made a small, nearly non-existent upper shadow. The bears pushed the index below its crucial support placed at its 5-day exponential moving average (DEMA) placed at 10,737, and 13-DEMA at 10,712.
The index bounced back from its 20-DEMA, placed at 10,670, to close 58 points lower at 10,682.70. One positive takeaway was that it managed to close above its crucial support level of 10,680.
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However, bears are slowly tightening their grip on the market. The Moving Average Convergence and Divergence, popularly known as MACD,threw upa ‘sell’ signal on the daily charts for the first time since March.
According to Pivot charts, the key support level is placed at 10,639.07, followed by 10,595.43. If the index starts moving upwards, the key resistance levels to watch out for are 10,751.77 and 10,820.83.
The Nifty Bank index closed at 26,073.80 on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 25,962.67, followed by 25,851.54. On the upside, key resistance levels are placed at 26,234.27, followed by 26,394.73.
Below are the top stocks which can give good returns in the short term:
Hadrien Mendonca of IIFL
Buy Bajaj Finance with targetat Rs 2,250and stop lossat Rs 1,975
Buy Colgate Palmolive with targetat Rs 1,276and stop lossat Rs 1,138
Buy Oil Indiawith targetat Rs 266and stop lossat Rs 230
Prakash Gaba of prakashgaba.com
Buy Radico Khaitan with target at Rs 460 and stop loss at Rs 420
Buy Steel Authority of India with target at Rs 80 and stop loss at Rs 75
Buy Sterlite Technologies with target at Rs 338 and stop loss at Rs 320
Sell Adani Ports with target at Rs 390 and stop loss at Rs 402
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