As the market becomes more negative, the Nifty index is expected to drop further if it falls below 23,000. Rupak De, a Senior Technical Analyst at LKP Securities, suggests that sellers, or “bears,” will be quick to sell whenever there’s a small rise in prices as long as the Nifty stays below an important line called the 50 EMA.
This past week, the Nifty ended about 2% lower after foreign investors sold their shares. The index has been declining after hitting resistance at the 50 EMA, dropping around 900 points in just six days. If the Nifty falls below 23,000, it may continue to drop.
For the Bank Nifty, the situation is similar. If it drops below 48,680, it might go down to 48,000.
On a positive note, TCS stock jumped about 6% in one day due to good news after its quarterly results. It’s performing well and could rise to Rs 4,500 if it stays above Rs 4,190.
Meanwhile, mid- and small-cap stocks struggled this week, falling more than the Nifty. Signs show that these stocks may not recover anytime soon, so many investors may wait before making any moves.
One stock, Kalyan Jewellers, fell almost 20%. Trying to buy this stock now might not be a good idea, as it could keep dropping. It’s better to wait for signs of a stop in the declines before buying in.
For the week ahead, here are some trading ideas:
– Buy UNOMINDA at Rs 1,098, aiming for Rs 1,220, with a stop loss at Rs 1,044. The stock has shown positive movement.
– Sell HAL at Rs 4,000, aiming for Rs 3,800, with a stop loss at Rs 4,100. This stock is showing bearish trends.
– Buy IRCTC at Rs 779, aiming for Rs 850, with a stop loss at Rs 759. This stock shows early signs of recovery.
(Disclaimer: This advice is the opinion of experts and does not represent the views of Thellv.news)
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