New Delhi, Nov 7: Gold price in the national capital gained Rs 81 to Rs 51,201 per 10 grams on Monday, according to HDFC Securities. In the previous trade, the precious metal had settled at Rs 51,120 per 10 grams. Silver, however, dropped Rs 244 to Rs 60,596 per kilogram. In the international market, gold was trading flat at USD 1,679 per ounce while silver was down at USD 20.74 per ounce. MCX Gold is trading flat after spectacular rally on […]
Indian equity benchmarks declined over 2 per cent on Thursday, led by slump in banking, financial and metal stocks.Also, persistent high inflation in the US also weighed on the domestic indices, as they extended their fall for the fifth .
Nifty fell for the third consecutive session on Tuesday to close at 15,622. In these three sessions, Nifty has lost almost 400 points, while Bank Nifty has lost more than 1,600 points. Nifty has reached very near to its 50 days EMA, which could provide support at 15,550 odd levels. However, on the upside, 15,700-15,750 would act as strong resistance in days to come. It would be advisable to utilise the resistance levels to initiate fresh short sells.
Buy TCS (Rs 3,203): | Target Rs 3,360 | Stop loss: Rs 3,103 The stock has been finding support around Rs 3,150 odd levels for the last seven sessions. It remained resilient amid recent market weakness. On July 20 2021, the stock formed a “Hammer” candlestick pattern, which signs short term trend reversal. It has witnessed a healthy correction from the previous swing high of Rs 3,387 and now seems set to bounce back. IT sector is also expected to outperform for the next couple of weeks.
Nifty has been consolidating in a narrow range, which is likely to end once the range of 15,600-15,900 is violated on the either side. At present, trading opportunities are more seen in the midcap and smallcap side and focus should be more on that segment only.
Stock recommendations:
Buy Federal Bank (Rs 89.30) | Target: Rs 96 | Stop-loss: Rs 85 The stock has broken out from a downward sloping trend-line on the daily chart. A Bullish Inverted Head and Shoulder pattern breakout is also being seen on the daily chart. Volumes have confirmed the breakout. It has been finding support on its 50 days EMA. Besides, banking as a sector is expected to resume its primary uptrend. Indicators and oscillators have been showing strength in the current uptrend. It is placed above medium to long term moving averages, indicating bullish trend on all time frames.
Nifty outlook Nifty made an attempt to surpass the crucial resistance of 15,915, but failed to do so. The index found resistance at 15,914 and ended with long-legged “Doji” candle on July 6, 2021. In the last one month, this was the third attempt by Nifty to surpass 15,900. However, the trend would be considered bullish unless Nifty breaks below its 20-day EMA, placed at 15,700-odd levels. On the upside, If 15,900 is taken out decisively; we can expect Nifty to reach 16,200 target immediately. Nifty Smallcap Index closed with bearish engulfing candlestick pattern on the daily chart. This could result in further profit booking in small caps.