Pabitro Mukherjee of Bajaj Broking says that the Nifty is showing signs of a pullback after forming higher highs and higher lows on Thursday, and adds that the key hurdle stands at 23,600 levels.
Amid the downturn, the Nifty Midcap 100 tested its 200-DMA after a gap of five months; presently 58 index constituents traded below the long-term average on the daily charts.
Nifty 50's crucial support is at the 23,000 - 23,100 zone. A breach below this could lead to a continuation of the downtrend towards 22,600 - 22,500 zone.
Nifty's recovery above the 23,200 level provides some near-term relief; however, the broader structure remains weak.
Tata Communications, PVR INOX and Radico Khaitan are showing bullish technical setups, backed by breakouts, support-based reversals and improving momentum indicators.
Gujarat Pipavav Port, Aegis Vopak Terminals and Tata Investment Corporation are showing bullish technical setups, backed by breakouts, improving momentum and strong participation.
The next important support is placed near 22,700, marked by an upward-sloping trend line.
Till Nifty 50 holds below 23,200 zones weakness could extend towards 23,050 then 22,950 levels while on the upside hurdles can be seen at 23,350 then 23,450 zones.
Black Box and Adani Ports present attractive technical buying opportunities, while the Nifty remains weak but could see a short-term bounce from key support levels.
The technical outlook remains positive for Paytm, Azad Engineering, and Kotak Mahindra Bank, with all three stocks showing bullish chart structures and potential for further upside.
Mayank Jain of Share.Market by PhonePe flags key support and resistance levels for wires & cables stocks - Polycab, Havells India and KEI amid market correction post UltraTech's 'Ultravolt' launch.
Stocks to buy today: Kunal Kamble is bullish on three stocks, namely Adani Ports, Pine Labs and Aegis Vopak amid bullish signals on tech charts.
When a stock becomes oversold, it does not automatically mean it is a good time to buy, cautions Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking.
The pace at which FIIs have added short bets in index futures accelerated in the last three trading sessions, says Dharmesh Bhatt, Head-Derivatives Research at Systematix Institutional Research.
Stock ideas for today: The index could now move towards the next support zone of 23,300-23,100, while any recovery is likely to face resistance around 23,600-23,800.
Stocks to buy today: EMIL and Ingersoll Rand among top stock picks by Vinay Rajani of HDFC Securities.
Till Nifty holds below 23,700, weakness could extend towards 23,500, then 23,400 levels, while on the upside, hurdles can be seen at 23,800, then 23,900 zones.
The 200-DMA is a technical indicator widely used to determine the long-term trends of the underlying index or stock. Indices or stocks trading below the 200-DMA are considered to be in a downtrend.
According to the NSE F&O data, FIIs have net sold index futures worth ₹10,397 crore thus far in the September series; Nifty OI now at 2-month high. Tech analysts flag key support levels on Nifty.
SPARC appears well-positioned for a short-term recovery after finding support near the 61.8% Fibonacci retracement level of the March low to July high rally.