Web special: Short term support for Nifty spot lies near 6432

Check out the technical trends in select index stocks with Ranak Merchant, technical analyst-strategies, Sushil Finance

Check out the technical trends in select stocks such as TCS, L&T, Hindalco, ICICI Bank, Axis Bank, IRB Infra and Apollo Tyres with Ranak Merchant, technical analyst-strategies, Sushil Finance:


SmartInvestor:Markets seem to be consolidating after hitting record highs yesterday. The Nifty continues to hold above 6,500 levels for now. What is your advice to traders on the benchmark for the near term?

Ranak Merchant:Nifty hit our target of 6570 (intra day high 6575) and a quick correction unfolded as seen in yesterday's session. Nifty (spot) has been unable to cross and close above the said level of 6570 for the last 6-7 sessions. This week being truncated in nature and FOMC 2 day meet starting today, index may continue the sideways consolidation / correction for the week, while stock specific action would continue. Short term support for Nifty lies near 6432 (spot).
 

SmartInvestor:TCS has been in a correction mode from Rs 2,250 levels. The stock has retreated sharply today on talk of lower revenue growth in the fourth quarter. What are the charts indicating for the IT major? What is your advice to medium term investors?

Ranak Merchant:The growth warning issued by Infy sounded an alarm for all IT majors and shortly TCS followed suit with warnings of a slow Q4. End of Feb and Mar beginning saw the stock stall near 2300 levels. The stock broke below its 50 day EMA and monthly Bear turning point of 2186 through the whole of last week thereby indicative of a breakdown. The stock has already achieved our targets of 2032 and appears to be hovering around the same. A close below 2032 would open doors of weakness to persist towards 1895 levels. However trading short positions to be covered if the stock closes above 2032 for 3 days.

For detailed transcript please CLICK HERE