Check out the technical trends for select index stocks such as TCS, ITC, Cipla, Maruti Suzuki, HDFC Bank and ICICI Bank with Kunal Bothra, technical analyst at LKP Securities:
Smartinvestor : Markets have slumped today post the Infosys numbers. The Nifty has dropped below 5,550 level. What is the near term outlook on the markets and what strategy should traders adopt at current levels?
Kunal Bothra : The markets are becoming extremely volatile, gains of two sessions get evaporated in just the opening of one session. Support of 5450 is a crucial support, which could probably bring some buying on Nifty. But if this level gets breached convincingly then even a sharp correction till 5200 could be likely.
Smartinvestor : Software major TCS seems to finding support at current levels despite the weak market trend post the Infosys results. Is the stock likely to resume its uptrend after a brief period of correction and what would be the near term supports and resistances for the stock?
Kunal Bothra : TCS is bouncing very well from its 200 DMA (Simple). I think this level of 1490 could act as a very good support in near term. However, today, it has created a sharp downwards gap on daily charts. If this gap is not closed in TCS in 2-3 days, then we may see a sharp correction in this stock as well.
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