Nifty has entered short-term down trend, says Vinay Rajani of HDFC Sec

Nifty has entered in to short term down trend

Nifty recently violated the 20 days SMA and EMA supports. The index also formed a bearish engulfing pattern on the weekly chart on week ended 4th Sep 2020. It would be advisable to remain bearish in the market unless Nifty surpasses the resistance of 11,585. Downside targets for Nifty are seen at 11,112 and 10,882.

Stocks:

Sell Tata Steel (403.50) | Target: Rs 385 | Stop loss: Rs 415
 

The stock has violated previous bottom support of 410 on the daily charts. Volumes have gone up along with the price fall. RSI oscillator has formed negative divergence on the short term charts. Metal sector has started showing weakness after long time.

Sell Manappuram Finance (143) | Target: Rs 132 | Stop loss: Rs 150
 

The stock has closed below its 200 days SMA and EMA with the higher volumes. Short term moving averages have crossed over medium term moving averages on the downside. Indicators and oscillators have turned bearish on the daily chart.

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Disclaimer: Vinay Rajani is Technical Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal.