By Riyank AroraOn Tuesday, the benchmark index opened with an 85-point gap down and plummeted nearly 1295 points by closing.
Leading the decline, the Nifty PSU Bank Index fell by almost 15.14%, the Oil & Gas index by about 11.80%, and the Nifty Metal Index by approximately 10.63%.
To manage risk effectively, a strict stop loss should be placed at 230.00.
A strict stop loss is set at 225, with an upside target of 300 and potentially higher.
A strict stop loss is set at 400, with a target of 500 and potentially higher.
By Riyank Arora
On Tuesday, the benchmark index opened with an 85-point gap down and plummeted nearly 1295 points by closing. The Nifty ended 1380 points lower, while the Sensex dropped a staggering 4390 points. Leading the decline, the Nifty PSU Bank Index fell by almost 15.14%, the Oil & Gas index by about 11.80%, and the Nifty Metal Index by approximately 10.63%.
Technically, the market has key support at 21,700 and immediate resistance at 22,300. The overall trend remains weak, and we anticipate the market will continue to decline, potentially reaching new lows over time.
Stock Recommendations:
Bajel Projects
CMP: 246.45 | SL: 230.00 | TARGET: 300.00
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The stock has touched its trendline support at 247.00 on the daily charts, offering an attractive risk-reward opportunity at current levels.
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With minimal downside risk and an RSI (14) around 45.45 indicating an oversold condition, the stock seems poised for an upward move towards 295.00 and 300.00. To manage risk effectively, a strict stop loss should be placed at 230.00.
BEL
CMP: 255.55 | SL: 225.00 | TARGET: 300.00
The stock hit its trendline support at 240.00 on the daily charts and managed to close above this level. With an overall positive trend and the stock forming higher highs and higher lows, it presents an attractive risk-to-reward ratio at current levels. A strict stop loss is set at 225, with an upside target of 300 and potentially higher.
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PFC
CMP: 426.75 | SL: 400.00 | TARGET: 500.00
The stock touched the lower boundary of its rising wedge support at 425.00 and closed above it. With a positive overall trend and an attractive risk-reward ratio at current levels, it looks like a strong buy. A strict stop loss is set at 400, with a target of 500 and potentially higher.
(Riyank Arora, Technical Analyst, Mehta Equities. Views expressed are author’s own. Please consult your financial advisor before investing.)
