Trading guide, Dec 10: Check key Nifty levels to watch; two stocks to buy

Nifty View

During the weekly expiry session, Nifty witnessed heightened volatility and ended the day at 25,839, down 120 points. The index opened 93 points lower and extended its decline by another 139 points, hitting an intraday low of 25,728. However, post 10 A.M., Nifty staged a strong recovery of 195 points, before facing another mild correction after 2 PM.

 

Technically, the index found support precisely at its 50-DEMA (25,728) and rebounded from that level, underscoring its short-term significance. Despite this recovery, Nifty continues to trade below its 5-, 10-, and 20-DEMA, which keeps the short-term trend tilted to the downside. For the coming sessions, immediate resistance is placed in the 25,950–26,000 zone, followed by a strong hurdle at 26,202. On the downside, today’s low of 25,728 will act as the key near-term support

level.  ALSO READ | Gujarat Pipavav, ESAB India among top stocks to buy today; check key levels

Stocks to buy today, December 10:

Buy IDFC First Bank (₹80.8): | Target: ₹84 | Stop-loss: ₹78

IDFC First Bank stock price has formed bullish piercing line candle stick pattern on the daily chart after running correction. Stock is placed above all key moving averages. Indicator and oscillator setup has turned bullish on hourly chart.

Buy Sansera Engineering (₹1,680): | Target: ₹1,770| Stop-loss: ₹1,630

Sansera Engineering stock price has formed bullish engulfing candle stick pattern on the daily chart after running correction. Stock has reclaimed its level above 20 DEMA. Stock price is on the verge of breaking out from bullish “Flag” pattern on the daily chart.  (Disclaimer:This article is by Vinay Rajani, senior technical and derivative analyst at HDFC Securities. Views expressed are his own.)