Nifty may enter corrective phase
Last close: 5,275
The Nifty may be entering a corrective phase; however, one need not turn completely bearish for now. In the very near term, the Nifty is likely to trade with a negative bias as long as the index remains below 5,330. On the other hand, the index is likely to get considerable support around 5,190-5,150. Hence, the ideal strategy would be to trade the range rather than having any particular bias. On Tuesday, the NSE index is likely to seek support around 5,260-5,250, and face resistance around 5,290-5,300.
Last close: Rs 778
Target: Rs 740
ABB has broken below its short-term moving average, and the Stochastic Slow also seems to be favouring the bears for the moment. Look to short the stock with a stop at Rs 790. On the downside, the stock can slide to Rs 740.
Last close: Rs 131
Target: Rs 122
Crompton Greaves has been facing some resistance around its long-term moving average for the last four trading days. The stock is likely to take a breather before it attempts an upside breakout. Look to short the stock with a stop at Rs 133. On the downside, the stock can drop to Rs 122.
Last close: Rs 491
Target: Rs 470
Ranbaxy has retraced sharply from the higher end of the Bollinger Band in the last two trading days. The stock is likely to exert selling pressure in the near term. Look to short the stock with a stop at Rs 495 for a downside target of Rs 470.
Disclaimer: The author of this article has no financial interest in any of the stocks mentioned above.
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