Benchmark indices are trading in a tight range with Sensex and Nifty oscillating between negative and positive zone.
By 10:20, the Sensex was up by 38 points at 20,935 mark and the Nifty gained by 10 points at 6,215 levels.
Speaking to Manu Kaushik, Ravi Nathani, Technical analyst at Nsetoday.com advised selling Asian Paint below 513 with a target of 507 and to sell KTKBANK for an intra-day target of 97 - 95. He also spoke on which IT stocks could go down in next 4-5 days.
SmartInvestor : Ravi, the sluggishness in market has continued into a second day now what are charts saying? Is consolidation on the charts later?
Ravi Nathani : I shall not suggest buying Nifty at current market price as Nifty is very close to its stiff resistance level of 6230. Best trading strategy for traders would be sell on rise with a strict stoploss of 6230 as per closing basis, whereas support expected in short term is around 5990.
SmartInvestor : Your take on IT stocks, the pack has seen selling pressure in the past two trading sessions? Is a trend emerging against IT stocks?
Ravi Nathani : On CNX IT Index or the other Heavy weights like INFY TCS HCLTECH WIPRO are expected for a small technical correction, post correction for the same these stocks would look attractive for re-entering for another round of rally. Best trading strategy for IT pack would be stay-away for 4-5 days and let the stocks settle and find its support.
SmartInvestor : Broader markets are again upbeat today. Your top picks from small-caps and mid-caps for today would be?
Ravi Nathani : From Small Cap - SKS MICROFINANCE close above 153 would open doors for 168, watch this stock closely as near & short term trend for the stock is bullish. From MID-CAP FEDERALBNK looks good with a target of 90 in short term & intraday it would be a best buy only above 80 with a target of 82.50.
SmartInvestor : How are you trading Asian paints, Karnataka Bank today. Both of these companies announced their results yesterday ?
