On the daily chart, immediate support for the Nifty is placed around 10,537 (50-day daily moving average) and 10,440 levels (50 percent retracement of its March to May upmove), whereas 10,699 (23.6 percent retracement of its March to May upmove) will act as immediate resistance.
The Nifty ended Tuesday highly volatile session on a negative note at 10,593.15, down 0.33 percent. Bears continued to exert pressure on domestic markets in the early noon session ahead of the Monetary Policy Committee meet.
Market sentiments remained weak with Commerce and Industry Minister Suresh Prabhu’s statement that unilateral trade restrictive actions by some developed countries could derail the fragile global economic recovery, which in turn would have implications on the job scenario.
Besides that, the BSE placed additional surveillance measure on numerous midcap stocks, which led to a sell-off in smallcap and midcap stocks.
On the daily chart, immediate support for the Nifty is placed around 10,537 (50-day daily moving average) and 10,440 levels (50 percent retracement of its March to May upmove), whereas 10,699 (23.6 percent retracement of its March to May upmove) will act as immediate resistance.
The relative strength index (RSI) on the daily chart is placed at 48.25 which is showing a downward momentum. Moving Average Convergence Divergence (MACD) is trading above the zero line with a negative cross, which indicates that the bias could remain bearish for the next few trading sessions.
India VIX ended down 4.09 percent at 13.31. A decrease in VIX suggests limited downside and a consolidated upmove in the market.
On the options front, maximum call open interest of 45.51 lakh contracts is seen at strike price 11,000, followed by 10,700, which now holds 33.89 lakh contracts. Maximum put open interest of 35.68 lakh contracts is seen at strike price 10,200, followed by 10,600 which now holds 34.76 lakh contracts.
As per the options data, immediate support is seen around 10,600 and 10,200 levels, whereas immediate resistance is seen around 10,700 and 11,000, which will act as stiff resistance in the June expiry.
Here are two stocks which could give 4-10% return in the short term:
Sanofi India Ltd: Buy| Close: Rs 5,068.35 | Target: Rs 5,335 | Stop loss: Rs 4,880 | Return: 10.89%
The stock has given a breakout above its downward trend line around Rs 5,038-5,045 levels on Tuesday on the daily chart which suggests bullishness in the stock.
A daily momentum indicator Relative Strength index (RSI) reading at 63.32 level, showing positive momentum and MACD trading above zero line with positive crossover whereas (+) DI continuously trading above (-) DI.
Based on the above observations, the trader can buy the stock around in dips around Rs 5,040-5,050 with a stop loss below Rs 4,880 (closing) for the target of Rs 5,335
Axis Bank Ltd: Buy| Close: Rs 530.90 | Target: Rs 510 | Stop loss: Rs 551 | Return: 4.85%
The stock has given breakdown from symmetrical triangle pattern around Rs 536-537 on Tuesday in the daily chart with moderate volumes.
The Daily Relative Strength index (RSI) breakdown its 21 days average and showing downward momentum and MACD trading with a negative cross above zero line, which indicates that stock likely to move downward further.
A trader can sell the stock after some technical bounce around Rs 536-538 with a stop loss above Rs 551 (closing) for the target of Rs 510.
MORE WILL UPDATE SOON!!
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