Targeted actions: The Indian market closed in the red for the fourth session on Thursday, following weakness in global markets. The broader Nifty50 slipped below 16,000 and the Sesex fell nearly 100 points as the benchmarks each fell 0.18%.
“The Nifty has seen a decent pullback from around 15200-16200 over the past few weeks. Several technicals presented themselves as hard barriers near 16200. As a result, the index had a brief distribution near 16000-16200 recently and slipped into a short-term correction mode again,” said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas.
The index is now approaching the lower end of a bullish channel on the hourly chart and the 20 DMA, which are near 15800-15850, Gaurav said.
“The overall structure shows that the index has the potential to break this short-term support area and drop towards 15500. be viewed as a new sales opportunity,” he said.
Meanwhile, some stocks received particular attention on Thursday. These stocks were Ceat, Birlasoft and Edelweiss Financial Services. Ceat closed with gains of almost 5%, Birlasoft fell just over 8% and Edelweiss Financial Services ended up 4% on Thursday.
Here’s what Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan of BNP Paribas, suggests doing with the following actions
The stock has been seeing strong traction for the past two weeks. Last week, it broke through the 200 DMA mark, which now acts as support for the meter. Today’s intraday decline received support near that crucial moving average from which the stock began to rally again. Going forward, 1325 and 1430 will be the medium term targets
The stock is in a short to medium term downtrend. Recently, it attempted to break through its major daily moving averages, but it was unsuccessful. Thereupon he began to slip again. Daily and weekly momentum indicators show further downside potential. The stock may continue to slide towards the 300-295 area.
3. Edelweiss Financial Services
The stock had several weeks of basic formation and started a new upward leg. The weekly chart shows that the stock broke higher from a Double Inside bar pattern. Short to medium term momentum indicators have turned in favor of the bulls. On the upper side, 65-66 will be the initial mid-term target zone with the potential to extend into 75.
(Disclaimer: Opinions/suggestions/advice expressed here in this article are investment experts only. Zee Business suggests its readers consult their investment advisors before making any financial decisions.)