Tech View: Nifty at multiple support area
Last close: 5,118
The NSE Nifty has finally reached the lower point of the expected trading band. The bears seem to have the momentum on their side, but the index is now close a multiple support area around 5,090-5,100. The lower end of the Bollinger Band on the daily charts, the long-term (200-day DMA) and the medium-term (50-day DMA) converge around 5,090-5,100. Hence, one can expect some support around these levels. However, sustained trade below 5,090, can trigger some panic selling. On Tuesday, the Nifty is likely to seek support, 5,095-5,085, while face resistance around 5,140-5,155.
Last close: Rs 1,558
Target: Rs 1,620
Bajaj Auto corrected a wee bit following its 10-per cent rally in the preceding three trading days. The stock seems to be a good buy on dips bet, with strong support expected around Rs 1,535 level. On the upside, Bajaj Auto is likely to test Rs 1,620.
Last close: Rs 574
Target: Rs 556
HDFC Bank has given a fresh downside breakout, the stock has slipped below its short-term moving average. Look to trade the stock with a negative bias as long as the stock trades below Rs 582. On the downside, the stock can slide to Rs 556.
Last close: Rs 616
Target: Rs 600
Select momentum oscillators have turned negative for Sun Pharma. The stock may trade with a bearish bias till the stock fails to cross Rs 625. On the downside, sustained trade below Rs 612 can take the stock to Rs 600-odd levels.
Disclaimer: The author of this article has no financial interest in any of the stocks mentioned above.
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