By Subash Gangadharan
On the daily chart, we observed that NSE Nifty 50 has corrected for the last 6 sessions after breaking out of the downward sloping trend line that has held down the highs of 2021 and 2022. And on Wednesday, the Nifty closed below the 200 day EMA, which indicates a weak bias for the near term. Nifty could move down further towards the 20 week SMA at 16788. Any rallies on the upside could find resistances at 17038-17176.
Sell Pidilite
Pidilite is in a short term downtrend as it has been making lower tops and lower bottoms for the last several sessions. Last week, the stock broke down below its recent supports and also reacted from the 20 day SMA. This indicates that the downtrend looks set to continue. Technical indicators are giving negative signals as the stock is now trading below the 20 day SMA. Momentum readings like the 14-day RSI are in decline mode and not oversold, which implies potential for more downsides. We therefore expect the stock to correct further in the coming sessions. Sell between the 2760-2780 levels. CMP is 2767.9. Stop loss is at 2840 while downside target is at 2670.
Also read: As Sensex, Nifty plunge over 4% so far in 2022 on global uncertainty, is it time to buy yet or wait and watch?
Sell IndusInd Bank
Indusind Bank is in a short term downtrend as it has been making lower tops and lower bottoms for the last several sessions. In the process, it has broken its near term support and closed below the 20 day SMA. This indicates that the downtrend looks set to continue. Technical indicators are giving negative signals as the stock is now trading below the 20 day SMA. Momentum readings like the 14-day RSI too are in decline mode and not oversold, which implies potential for more downsides. We therefore expect the stock to correct further in the coming sessions. Sell between the 1134-1150 levels. CMP is 1137.7. Stop loss is at 1190 while downside target is at 1050.
(Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities, Views expressed are the author’s own.)