'Further downside expected if Nifty edges below 6K'

Avoid long positions at current levels and keep tight stop losses if done so, says Mohit Gaba -Technical analyst.

Key benchmark indices extended losses in noon deals pulled down by selling pressure in financial heavyweights among other frontline stocks. Also, weakness in the Asian market weighed down on the sentiment.

Investors' profit-taking on Thursday brought Asian markets off three-week highs scaled a day earlier on the back of comments from the Federal Reserve's new chairwoman, Janet Yellen, over the prospects for U.S. growth. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4 percent after having gained 4.5 percent in the previous five sessions. Japan's Nikkei fell 1.0 percent after 4.6 percent rise in the past three days.

At The 30-share Sensex of the Bombay Stock Exchange (BSE) slipped 158 and is quoting at 20448.49 down and the 50-unit National Stock Exchange (NSE) Nifty slipped below its key support level at 6050, sliding 53 point, quoting at 6,031 levels.
 

Mohit Gaba –Independent Techical analyst, is of the view that Nifty can potentially slide downwards if it falls below 6,000. Mohit also speaks on today's buzzing stocks and picks stocks that could give 8-10% returns in this weak market.

Markets hit one-week low levels today. Do charts indicate further downside?
The market has moved lower today which indicated weakness, but it lacks momentum, unless we see strong and swift moves it would be difficult to trade the markets. We have to wait and see how the market closes today

What are the levels to watch out for on key benchmark indices?
If 6000 breaks with force then we could see further down side, Its not only important what levels break but also how they are broken, breaking a level with force is very important for a strong trending mmove

How are pharma stocks such as Cipla, Sun pharma and Lupin placed technically? Cipla is under pressure today after reporting its Q3 nos
I would stay away from Cipla, its having negative price movement in a sector with a lot of tailwinds, Sun Pharma is a good chart to enter but one should have a stop loss of 604 or 580 for a longer term holding period. Lupin can also be bought but have a stop loss at 880

Please share with us your outlook on Tata Motors’ stock. The stock witnessed and up-move today after the company reported Q3 nos?
Tata Motors has run up, One could go long but have a stop loss of 370, The reason I am giving tight stop losses with all my long advice is cause the market could move lower, and if that happens then most likely all these stocks also move lower, in that case I would prefer tight stop losses.

What stocks can give 8-10% returns from current levels in the short-term?

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