Rallies should be utilized to Exit trading longs
Nifty fell for the fourth consecutive day to close at 11,174. In these four sessions, many stocks have witnessed huge selling and turned oversold on the short term charts. IT and Pharma sector helped the Nifty a lot to limit the losses. Nifty has violated the support of its 50 days EMA. The trend would be considered bearish unless Nifty closes above 11,450. Support for the Nifty is seen at 10,882.
Sell Bosch Ltd (12,409) | Target: Rs 11,500 | Stop-loss: Rs 13,000
The stock has violated the support of its 200 days EMA and SMA. It has confirmed the bearish "flag" pattern formation on the daily chart. The stock has also broken down from the upward sloping trend line on adjoining the major swing lows on the daily charts. There is also a bearish head and shoulder pattern seen on the weekly chart.
Sell ONGC (69.65) | Target: Rs 64 | Stop-loss: Rs 73
Bearish Flag pattern breakdown on the short term charts. Primary trend has been bearish with lower tops and lower bottoms. Short term moving averages are trading below long and medium term moving averages. Indicators and oscillators have turned bearish on the weekly chart.
Disclaimer: Vinay Rajani is Technical Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal.