By Subash Gangadharan
On the Daily chart, the Nifty had just lately damaged out of the 16415 resistance and headed greater. It nonetheless discovered resistance across the 16800 ranges which additionally roughly coincides with the 200 day EMA. The Nifty subsequently corrected and is now buying and selling simply above the 20 day SMA at 16260. Many shares are additionally correcting and failing to carry on to their latest positive aspects. Combined with the unfavourable market breadth, it is a signal of weak spot and warning is due to this fact warranted.
While we stay open to additional pullback rallies within the very close to time period, we should do not forget that the intermediate pattern stays down. The bears would acquire extra management as soon as the latest intermediate low of 15735 is damaged. Traders ought to look ahead to energy to emerge earlier than going aggressively lengthy.
Sell GNFC
GNFC is in an intermediate downtrend because it just lately broke the assist of 752 and has been shifting decrease in the previous couple of weeks. Last week, the inventory reacted from near the 20 week SMA. This signifies that the downtrend seems set to proceed.
Technical indicators are giving unfavourable indicators because the inventory is now buying and selling under the 20 day and 50 day SMA. Momentum readings just like the 14-week RSI are in decline mode and never oversold, which suggests potential for extra downsides.
We, due to this fact, count on the inventory to appropriate additional within the coming periods. Sell between the 624-628 ranges. CMP is 626.1. Stop-loss is at 660 whereas the draw back goal is at 570.
Sell McDowell
McDowell is in an intermediate downtrend because it has been making decrease tops and decrease bottoms for the final a number of weeks. Last week, the inventory reacted from near the 200 day EMA. This signifies that the downtrend seems set to proceed.
Technical indicators are giving unfavourable indicators because the inventory is now buying and selling under the 20 day and 50 day SMA. And each these shifting averages are sloping down. Momentum readings just like the 14-week RSI are in decline mode and never oversold, which suggests a possible for extra downsides.
We, due to this fact, count on the inventory to appropriate additional within the coming periods. Sell between the 770-774 ranges. CMP is 772. Stop-loss is at 800 whereas the draw back goal is at 720.
(Subash Gangadharan is a Senior Technical and Derivative Analyst at HDFC Securities. Views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing.)
Source: www.financialexpress.com”