Vinay Rajani,HDFC SECURITIES
On 07 March i.e. in yesterday’s trade, the Nifty saw a decline for the fourth consecutive day. At the end of trading, the Nifty closed at 15,863.15, down 382.20 points, or 2.35 per cent. Currently, the Nifty is seen down about 15 per cent from its all-time high of 18,604. The Nifty Smallcap index is already looking down 23 per cent from its peak.
Nifty is making lower top and lower bottom on the daily chart. It remains below its 200-day EMA at 16703. On 24 February 2022 Nifty went below the multiple bottom support of 16,800 on closing basis. Now it seems that its previous support of 16,800 has become an upward resistance for it. In the short term, till now Nifty does not close above 16,800, it is likely to remain under pressure.
Other technical indicators are also showing signs of weakness in Nifty. Currently, support is seen for Nifty at 15,400-15,500. At the same time, the first resistance is seen at 16,300 on the upside and a big resistance is seen at 16,800. In such a situation, the positional trend of the market is looking bearish, but the possibility of a pullback in the short term also cannot be ruled out. In the short term, metal, commodity, sugar and oil and gas can see a rise. In such a situation, keep an eye on the quality stocks related to these sectors and buy them by putting trading stoploss.
Today’s 3 Buy Calls That Can Earn Double Digits
NMDC: Buy , LTP: Rs 153 | Buy this stock with a stop loss of Rs 145 for a target of Rs 170. In 2-3 weeks, this stock can see a return of 11 percent.
Balrampur Chini Mills: Buy , LTP: Rs 444 | Buy this stock with a stop loss of Rs 420 and target of Rs 480. In 2-3 weeks, this stock can see a return of 8 percent.
MTAR Technologies: Buy , LTP: Rs 1,881 | Buy this stock with a stop loss of Rs 1,800 and target of Rs 2,100. In 2-3 weeks, this stock can see a return of 12 percent.
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