Short-term intermediate supports bulls placed at 10040 - 10100

Mustafa Nadeem, CEO, Epic Research

The third day of decline for nifty to end a new 2018 low as Sell off continued across the board with benchmark and other indices falling 1 - 4%. The looser continues to be the PSU Banking space falling 3.57% and has lost almost now 30% in a matter of last few weeks.

Nifty gave a follow up selling after a breakout yesterday which is a clear indication that pressure and grip of bears in the market are very strong. The nifty bank was down by 1.29% as well taking private sectors to a bearish momentum. The dark clouds on Banking space will continue to haunt until we are out of the recent scams being unearthed. They may continue to haunt and further put pressure in the market since it is now widespread to both private and public banks. Secondly, recent trade war tariffs have pinned the metals space which is also a heavyweight sector. The effects of LTCG is already in place which has given us a correction from an all-time high of 11180 levels.

In short term, pressure may continue with lower levels to be tested. There may be short-term intermediate supports that can be providing a breather to bulls placed at 10040 - 10100. Below that we may see further downside.

TATA CHEM - Stock has given a good correction till the date and now it is trading at the support level of 200 DMA on the daily chart and did not close below it and The RSI also near to oversold zone. We recommend buying from current level for the target of 700 with the stop loss of 769.

HEXAWARE - Stock has shown good bullish strength in the bearish market with good volumes. The stock is showing its consolidation on the daily chart. We expect it will move out of consolidation phase and will perform. The RSI is showing upward move on the daily chart. We recommend buying from current level for the target of 360 with the stop loss of 350.

RELINFRA - Stock has shown weakness in the daily chart with forming head & shoulder pattern on daily chart. The RSI is extremely bearish on the daily chart. We recommend selling from current level for the target of 390 - 370 with the stop loss of 435.

Source : Equity Bulls

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