Nifty closed in negative zone for the third consecutive day in yesterday’s trade. This rising channel pattern closed near the lower band on the daily time frame. A gap-down opening was seen in the Indian markets on September 29 amid weak global cues. But it saw a good recovery in day trading. At the end of trading, the market closed on a slight decline.
Usually, the last week of the monthly expiry sees volatility in the market. Now to get an idea of the market movement for the next month, one has to keep an eye on the future rollover data. A rise in the US benchmark bond yield and a strengthening dollar limited the gains in the Indian markets.
Since the prices are seen to be trading in the middle of the rising channel pattern. This indicates that the bullish trend will continue in the market going forward. If Nifty breaks the lower band of the pattern located at 17,600–17,550, then in the short term we may see a weakness in the market. At the same time, resistance is visible on the upside for Nifty at the level of 17,950.
Looking at the bank stocks, Bank Nifty formed a Bearish Engulfing candlestick pattern on 28th and 29th September. These days Bank Nifty closed below the Bearish pattern which confirms the Bearish candlestick pattern.
Prices are trading above their upward rising trendline on the Daily chart which is located near 37,200. If Bank Nifty sustains above 37,200 then it may soon form a bullish trend. But if the index closes below the trend line, it may slide to 36,400. At the same time, on the upside, there is a resistance around 38,400 for this.
Today’s three calls in which there can be huge earnings in the short term
Sun Pharma: Buy | CMP: Rs 811.30 | This stock has a buy call target of Rs 855 with a stop loss of Rs 785. This stock can give 5.50 percent return in 2-3 weeks.
Britannia Industries October Futures: Sell | CMP: Rs 4,003 | For sell in October futures of Britannia, target Rs 3,800 and stop loss at Rs 4,125. This stock can give 5.1 percent return in 2-3 weeks.
Dixon Technologies: Buy | CMP: Rs 4,465 | A buy call on this stock is given with a target of Rs 4,820 with a stop loss of Rs 4,285. This stock can give 8% return in 2-3 weeks.
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