Mr. Rahul Sharma, Sr. Technical Research Analyst, Equity99
Asian market remained negative on Monday but NIFTY opened on positive note on first day of the week. Nifty's open and high was same at 11751.8 level. At higher level nifty struggle as supply emerges. European markets open with mix trend but in second half of the day sharp profit booking seen in nifty. At the end, nifty closed at 11582.35 down by 98.15 points from previous close.
Nifty has formed big red candle stick pattern on daily chart with same open and high which is negative sign. Nifty has also broke 6 days consolidation range of 11595-11760 on lower side. US market will remain closed on Monday on account of Labor Day.
Last week we have seen strong GDP numbers for Q1FY19 which is supportive for current bull market. Most of companies have posted strong numbers for Q1FY19. So fundamentally speaking, market is looking weak for short term but on dips buying will emerge near support levels and stock specific action will continue.
On technical front, momentum oscillators like RSI, Stochastic turned negative on daily basis. 3 and 7 days EMA have also formed dead cross on daily chart. For today's trading 11635-11640 will act as strong resistance area, cross over with huge volume will take it to 11700 level. On lower side below 11565 expect sharp panic up to 11535-11530 level, break with volume can take nifty up to 11485 level.
Top stocks pick by Equity99
NCC - stock has formed inverted head and shoulder pattern break out on daily chart which is bullish in its nature. We recommend buying on dips around Rs.103-103.25 with the stop loss of Rs.100 for the target of Rs.108.
ESCORTS - stock has formed head and shoulder pattern break out on daily chart which is bearish in its nature. Short term trend turns negative. We recommend selling on high around 836-840 with the stop loss of Rs.853 for the target of Rs.810.
JUST DIAL - after small consolidation in narrow range stock has given down side break out with price and volume action. We recommend selling on high around 540-542 with the stop loss of 548 for the target of 525.