Titan stock price: Day Trading Guide: 2 stock recommendations for Monday
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Continuing the drop from the previous week, selling pressure intensified last week as Nifty50 held steady below 17,600. After Thursday’s bullish candle, the overall index failed to provide a follow-up positive; in fact, in Friday’s trade, Nifty50 opened below the previous session’s low and fell to 16986. Friday’s move took the form of a âsplit lineâ candle pattern , and said pattern at the current stage indicates a sudden change in market sentiment and the immediate hurdle is now near the 17400 level.
Bank Nifty fell for the third week in a row with a higher magnitude; moreover, it lost 14.4% from the record. The index could see a minor rally, however, the midpoint of last week’s decline (i.e. 37100) could turn out to be immediate resistance.
The auto index has significantly underperformed, losing 8.5% this week. India VIX jumped 27% to settle above the 21 level, higher price volatility is expected to continue.
Recomendations
To buy
near Rs 530-526
Stop loss: Rs 513
Target: Rs 560
The V-shaped recovery ensures a bottom of panic at the recent low. Holding above short-term averages should keep the short-term outlook positive. The ongoing rally is expected to continue up to the level of Rs 585.
To sell
December futures near Rs 2320
Stop loss: Rs 2360
Target: Rs 2240
The title is going through a corrective phase to digest its uptrend of several months. The appearance of a bearish candle, passing under the support of Rs 2350, justifies a negative outlook for the title.
(Amit Trivedi, CMT, Technical Analyst – Institutional Equities, YES Securities. The opinions are his.)
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