Vinay Rajani of HDFC Sec suggests selling Infy Oct Fut, Kotak Bank Oct Fut

Nifty has confirmed the bearish head and shoulder pattern on the daily chart, which indicates further room of downside. Nifty has started forming lower tops and lower bottoms on the daily chart. Nifty also closed below the previous swing low of 24567, which could drag the index to the lower levels. Next support for the Nifty is near 23900. Resistance for the Index has shifted down to 24700 and unless that is taken out, one should remain bearish in the index.

Sell Infy Oct Fut (1,836): | Target: Rs 1,785 | Stop-loss: Rs 1873

Stock price has broken down from the multi week consolidation with higher volumes. Stock has violated crucial support of its 50 DEMA, placed at 1905. Indicators and oscillators have turned bearish on the short term charts.

 

Sell Kotak Mahindra Bank Oct Fut (1,774) | Target: Rs 1,715 | Stop-loss: Rs 1,800

Stock price has recently breached supports of its 50,100 and 200 DEMA. Stock has also violated the upward sloping trend line support on the daily chart. Stock has formed lower top and lower bottom formation on the daily chart.

(Disclaimer: Vinay Rajani, CMT is a senior technical and derivative analyst at HDFC securities. Views expressed are his own.)