The Nifty50 experienced a sharp correction on Wednesday, but it managed to hold on to the 22000 level towards the close of the trade.
The market may go sideways after a sharp rise and that may be considered as healthy from the long run perspective, suggest experts.
“Technically, a bearish engulfing pattern emerged on Nifty in the previous trading session, signalling short-term weakness,” Om Mehra, Technical Analyst, SAMCO Securities, said.
The RSI weakened, slipping from 63 to 58 levels. However, the index remains above its 20-Days SMA. The immediate support levels are identified at 21,900 and 21,850 levels with resistance positioned at 22,220.
“The overall outlook suggests short-term weakness or possible consolidation in the upcoming trading sessions,” highlights Mehra.
A close below the crucial psychological support of 22000 on Thursday could trigger further weakness while on the upside the immediate resistance is placed at 22,160.
“The Nifty has formed a bearish engulfing pattern on the daily chart, indicating a potential pause in the ongoing rally. The momentum indicator RSI is showing a bearish crossover, signaling weakness in the near term,” Rupak De, Senior Technical Analyst, LKP Securities, said.
“Immediate support is positioned at 22,000; a decisive drop below this level could lead the index towards 21,700. On the upside, resistance is identified at 22,160,” he said.
We have collated a list of stocks from the F&O basket along with cash market from various experts for traders who have a short-term trading horizon:
Expert: Jayesh Bhanushali, Senior Derivative & Technical Research Analyst, IIFL told ETBureau
D-Mart: Buy| Target Rs 4000| Stop Loss Rs 3710
SBI: Buy| Target Rs 800| Stop Loss Rs 754
Tata Steel: Buy| Target Rs 151| Stop Loss Rs 140
Expert: Kunal Bothra, Market Expert told ETNow
Havells India: Buy| Target Rs 1440| Stop Loss Rs 1390
Nestle India: Buy| Target Rs 2600| Stop Loss Rs 2500
PI Industries: Buy| Target Rs 3800| Stop Loss Rs 3630
Expert: Nooresh Merani, an independent technical analyst told ETNow
HDFC Bank: Buy| Target Rs 1500| Stop Loss Rs 1420
Grasim Industries: Buy| Target Rs 2400| Stop Loss Rs 2150
Sunteck Realty Ltd: Buy| Target Rs 600| Stop Loss Rs 460
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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