Downs in the D - Street: Engulfed by bears in weekly chart
The Nifty traded lower for the major part of the day on Friday and closed in the red for the second consecutive session on December 6, dragged by selling pressure across sectors. A weak economic growth outlook, expected higher inflation, and a likely slip in fiscal path dented the sentiments.
A bearish candle suggests that the bears were able to regain control after the index moved in a narrow range for the past few sessions. It is usually seen as the end of an uptrend but if the index breaks below its crucial support level of 11,800, selling pressure could accelerate. The Nifty opened higher at 12,047.35 and hit day's high of 12,057.05, but after an initial hour of positive trade, it lost ground and traded lower for the rest of the session to hit an intraday low of 11,888.85. It closed 96.90 points lower at 11,921.50.
We can see a big momentum in following stocks:
Sell: Maruti Suzuki India Limited (Below Rs 6,864)
Target: Rs 6,809
Stop loss: Rs 6,914
The stock is indicating selling action from major moving averages in daily chart. Moreover, the stock has given a breakout from its support level of 7,000 and might continue to trade in the negative direction until its next support of 6,558.
Considering the technical evidence discussed above, we recommend selling the stock below Rs 6,864 for the target of Rs 6,809, keeping a stoploss at Rs 6,914 on a closing basis.
Sell: Axis Bank Limited (Below Rs 715)
Target: Rs 709
Stop loss: Rs 719
The stock has declined more than 1 per cent after trading negative for the two consecutive trading sessions. It also has managed to close below its major support level of 725 intraday.
Considering the technical evidence discussed above, we recommend selling the stock below Rs 715 for the target of Rs 709, keeping a stoploss at Rs 719 on a closing basis.
Disclaimer: The analyst does not hold position in any of the stocks mentioned above.