Nifty outlook & stock calls by Anand Rathi: Sell Siemens, Buy Cummins India

The stock of Siemens is making a lower high and lower low formation on the daily chart and it has breached its short term 21 DMA which is currently placed near 1,075 levels

SELL NIFTY | TARGET: 9,600 | STOP LOSS: 10,040

The NIFTY index earlier breached its major neckline which was placed near 10,040 levels, and also achieved our short term targets of 9,750 levels. The overall structure still looks weak and as long as Nifty trades below 10,040 levels we can expect the downside momentum to continue towards 9,600 levels. The momentum indicator RSI has also started making a lower high and lower low formation. Although at the current level, the risk and reward are not favorable. Hence one should wait for some pullback towards the 9,850-9,900 zone to initiate short positions.

SELL