Indian markets are in a firm bear grip as it continues to slide, making lower lows throughout the week. Moreover, it has closed below its crucial support line of 50-DMA placed at 14,730, which also happens to be a channel support line, confirming the weakening uptrend. A sustained trade below the recent lows of 14,450 could extend the fall, dragging the Nifty50 lower to cover up the post-Budget GAP area at 14,330.
On the upside, 14,700 will act as an immediate hurdle now. The 50-DMA and pullback to this resistance line may get sold into again. Bulls need to push the index above this resistance of 14,700 to trigger more short covering relief rallies.
Equity recommendation
Aarti Drugs: BUY
CMP: Rs 683
Target: Rs 750
Stop loss: Rs 640
The stock has resumed its uptrend after breaking out of a consolidation pattern. Further, volumes have picked up in the recent bull candles and also in the breakout candle, confirming the bullishness. Technical indicator RSI is also confirming that the stock is trading in the bullish territory.
Tata Consumer Futures: SELL
CMP: Rs 598
Target: Rs 565
Stop loss: Rs 620
The stock has broken down from a rising wedge pattern, triggering a trend reversal favouring the bears. Further, the volumes have picked up in the correction, confirming weakening uptrend.
Aditya Agarwala is
Senior Technical Analyst, YES Securities. Views are his own.
