Nifty Technical View
By plunging more than more than 2 per cent yesterday, Nifty violated the crucial support of 10,875 on closing basis, and closed far below that at 10,797. Nifty has resumed its primary down trend after one sharp pullback from 10,637 to 11,142. The index could witness further selling from current levels towards the next support of 10,350-10,400. Earlier support of 11,875 would now interchange its role as a Resistance.
SELL AXIS BANK (646)
Target: Rs 620
Stop-loss: Rs 660
The stock has broken down below the consolidation range Rs 650-685, which it held for the last 5 weeks. It has reached below its 20, 50, 100 and 200 DMA, indicating bearish trend from short to medium term. We recommend selling the stock at CMP, for the target of Rs 620, keeping a stop loss at Rs 660 on closing basis.
SELL AMBUJA CEMENT (193)
Target: Rs 183
Stop-loss: Rs 199
Its price has violated the crucial support of Rs 196, the double bottom formation on the daily charts. Cement sector stocks seems to be weakening on the medium term charts. Indicators and Oscillators have been showing weakness in the counter. We recommend selling the stock at CMP, for the target of Rs 183, keeping a stop loss at Rs199 on closing basis.
Disclaimer: Views expressed are the author's own. He may have positions in one or all of the above mentioned stocks.