The index is likely to retest the 200-day DMA in the short term

Nifty
Last close: 5,087

The much-awaited profit taking materalised in trades on Monday with the Nifty declining over 2 per cent in a single trading session. However, given the positive momentum the index is likely to find strong support at lower levels. Traders can look to initiate fresh longs closer to the 5,000-mark, with a stop around 4,980. On the upside, the index is likely to revisit the 200-day DMA around 5,200. On Tuesday, the Nifty is likely to seek support around 5,055-5,030, while face resistance around 5,120-5,140.

BHEL
Last close: Rs 243
Target: Rs 220

BHEL has given a sharp downside breakout, making the stock weak in the near term. Look to short the stock on pullbacks with a stop around Rs 265 in the near term. On the downside the stock is likely to drop to Rs 220.

Cairn India
Last close: Rs 342
Target: Rs 325

The momentum oscillators are indication some kind of profit taking at the Cairn India counter in the near term. Look to trade the stock with a negative bias with a stop at Rs 353. On the downside the stock can test Rs 325.

ITC
Last close: Rs 201
Target: Rs 210

ITC is nearing its major support around the 200-day DMA which is placed at Rs 198.75. The stock is likely to get considerable support around Rs 197-198. One can look to buy the stock at these levels for upside target of Rs 210 in the short term.

Disclaimer: The author of this article has no financial interest in any of the stocks mentioned above.