On Friday, the market saw a decline for the fourth consecutive day. Nifty closed 139 points lower at 17,617 level while Sensex closed 427 points lower at 59,037 level. Bank Nifty fell 276 points to close at 37,574 due to pressure on banking stocks. Nifty has formed a doji pattern on the daily chart. Its closing was close to its opening level. Last week, the Nifty had fallen 3.5 per cent and formed a large bearish candle on the weekly scale.
Nagraj Shetty of HDFC Securities It says that a small size candle has been seen on the daily chart. Along with this, upper and lower shadows have also been formed. Technically this formation indicates a doji or high wave candle pattern. These patterns are indicative of high volatility in the market at lower levels.
The formation of such a doji pattern after a strong bullish or bearish trend is considered a sign of a trend reversal. An upside bounce can be expected in the market in the short term after the steep fall in the last two trading sessions. However, he also says that the short term trend of Nifty remains weak with high volatility.
Trade setup for today: Take a look at these figures before the market opens, it will be easy to catch profitable deals
He further said that there is support near the level of 17,600-17,500 and the doji formation on Friday’s swing low is showing the possibility of an upside bounce or a slight decline from here. The confirmation of the bottom reversal will give an idea of the upside bounce coming from here. There is an immediate hurdle for Nifty at 17,800 level.
Like the giants on the previous trading day, there was weakness in small and medium stocks too. Nifty Midcap 100 index saw a weakness of 2.4 percent. At the same time, the Smallcap 100 index closed with a fall of 2.3 percent.
Talking on today’s movement of the market, Ruchit Jain of 5paisa,com says that this week the level of 17500 will be very important for Nifty. Nifty has support on this. If Nifty appears to move above 17700, then once again buying will be seen in the market and Nifty will once again be seen going towards 17900-18000. He further added that last week’s fall was a mild and short term decline. Now the market will see a boom once again before the budget.
Today’s Intraday Calls which can have huge earnings
Sumeet Bagdia of Choice Broking Intraday Call
HDFC Bank: Buy at current price, Target Rs. 1575, Stop Loss Rs. 1485
Infosys: Buy at current price, target Rs 1825-1840, stop loss Rs 1770
Intraday Call by Anuj Gupta of IIFL Securities
Godrej Agrovet: Buy at Rs 510 level, target Rs 560, stop loss Rs 484 level
Ashok Leyland: Buy at Rs 135 level, Target Rs 145, Stop loss Rs 128
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