By Nagaraj Shetti
After exhibiting an intraday upside restoration from the lows on Monday, Nifty witnessed sharp weak point on Wednesday and closed the day steeply decrease by 391 factors. After opening with a constructive observe, the market slipped into weak point within the early to mid-part of the session. After the announcement of repo charge hike by RBI at 2 pm, the promoting stress received intensified with excessive volatility throughout the mid to later a part of the session. An extended bear candle was fashioned on the day by day chart that has damaged decisively beneath the vital help of 16900-16800 ranges. The current chart sample additionally signifies a draw back breakout of the broader excessive low vary motion of round 17400-16900 ranges. This might be thought of as a draw back breakout of essential decrease help out there. This will not be signal and will have extra weak point for the quick time period.
The space of 16800 has been instrumental on the subject of a sustainable development of Nifty in previous few months. The market has displayed motion of round 1000 factors after its draw back breakout and subsequent upside breakout of 16800-17000 ranges previously (twenty fourth Feb and seventeenth March respectively).
Having damaged once more beneath the vital help of 16800, the probabilities of additional steep weak point within the close to time period. This anticipated market motion might open a chance of bigger diploma of decrease backside formation beneath 15670 ranges within the subsequent few weeks. Any upside bounce from right here might discover sturdy resistance round 16800-17000 ranges. Immediate draw back targets to be watched for Nifty round 16200 ranges.
Sell DLF MAY FUTURE- (CMP Rs 350.20)
After the formation of decrease high at Rs 407.50 within the early a part of April, the inventory worth has witnessed a sustainable down development within the final one month. The formation of lengthy damaging candle thus far this week, after a formation of small weekly candles previously point out resumption of intense weak point within the inventory worth. Volume has expanded throughout decline and weekly RSI exhibits damaging indication. The total chart sample appears damaging for close to time period.
Selling may be initiated in DLF May Future at CMP (350.20), add extra on rise as much as Rs 360, anticipate the draw back goal of Rs 320 within the subsequent 2-3 weeks. Place a stoploss of Rs 368.
Sell APOLLO HOSPITAL MAY FUTURE – (CMP Rs 4038)
After exhibiting a spread certain motion in the previous couple of months, the inventory worth has witnessed a decisive draw back breakout of the essential development line help round Rs 4500 levels-as per weekly timeframe chart. The present decline additionally point out a draw back breakout of 200 day EMA round Rs 4450 ranges. The quantity has expanded throughout draw back breakout, which sign heavy buildup of quick positions and day by day 14 interval RSI moved beneath the essential ranges of 40. With this damaging chart sample, one might count on additional weak point within the inventory worth forward.
One might look to create shorts in APOLLOHOSP MAY FUTURE at CMP (4038), add extra on rise as much as Rs 4150, anticipate the draw back goal of Rs 3700 within the subsequent 2-3 weeks. Place a stoploss of Rs 4225.
(Nagaraj Shetti is a Technical Research 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”