By Subash Gangadharan
Markets correct sharply
Nifty has broken the recent highs of 21764 and reversed the recent short-term uptrend. Crucial supports are now at 21448. A close below these levels could trigger a bigger fall that could take the Nifty towards the 21000 levels, where we have the 50-day SMA. Any pullback rallies could find resistance at 21851.
Sell Britannia
Britannia is in a short-term downtrend as it has been making lower tops and lower bottoms for the last few weeks. On Wednesday, the stock corrected and broke its previous swing low of 5076, indicating it is set to move lower in the coming sessions.
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.
Upscale amenities, prime location position Gurugram as an ideal choice for luxury home buyers: Ravish Kapoor EU-India Joint Effort to Combat Online Extremism: A Strategic Collaboration Algerian Boxer Imane Khelif bags gold in Paris Olympics 2024, here’s what she said about her gender controversy Paris Olympics 2024: India’s medal tally and full winners list here
We therefore expect the stock to correct further in the coming sessions. Sell between the 5055-5070 levels. CMP is 5059.6. The stop loss is at 5150 while the downside target is at 4960.
Sell Ramco Cements
Ramco Cements is in a short-term downtrend as it has been making lower tops and lower bottoms for the last few weeks.
This week, the stock has broken down from a trading range and closed below the 20-day and 50-day SMA. This indicates that the downtrend looks set to continue. 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 950-955 levels. CMP is 952. Stop loss is at 987 while the downside target is at 900.
(Subash Gangadharan is a senior technical and derivative analyst at HDFC Securities. Views expressed are author’s own. Please consult your financial advisor before investing.)