Stock market on 12 February
In a highly unexpected trade session, the Nifty 50 and the sensex closed down with a slight decline, marking the loss of the seventh consecutive day – the longest in three months. The indices started the flat to make the day a little positive, but gained momentum to brighten the investor’s spirit. This improvement was operated by both global and domestic factors, such as a decline in retail inflation at a five-month low and the progress of the progression of ending the Ukraine-Russia conflict.
Also read: Domestic demand in Q3 gets a vengeance in Q3 amid low feeling
More than 230 stocks on BSE reached their lowest point in a year. Despite the short -term positive trend, the market still faces challenges in overcoming immediate obstacles. A strong step above 23,250 may indicate a close-term reversal, while immediate support is about 22,800.
Business approach
With the picture being rapidly complicated, it is intelligent to reduce participation and wait for clarity because wider market remains under pressure. International signals expect the trends to affect, and their impact on the currency, as discussed earlier, will play a role in this week’s movements.
We have decided to look at things from a different angle to assure our perspective. On the high deadline chart, we see that the USD-Inr has increased the previous consolidation. A long candle pattern on the weekly chart indicates the tendency of a recession. This has created some uncertainty, so it is important to move forward with caution during this challenging business week.
Also read: Can Ashok Lyland’s staller walk on margin?
Extensive indices continue to suffer from lack of participation on the opposite, making it difficult for the mid -cap and small cap to recover.
As indices are stumbled through a challenging phase, now we are watching the stress slowly intensifying. Shifting of option data from maximum pain of around 23,200 to 23,100 clearly indicates that now upside down is becoming more difficult. Put call ratio (PCR) is at 0.86. Given that we can keep looking at the sale pressure, someone should seek an opportunity to go down.
The charts shown below highlight the confusion of investors as to buy something from lower levels on Wednesday and on Thursday from high levels. This shows that bears can hold a grip on the market spirit. RSI is slipping and a step below 30 can be quite harmful.
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Three stocks to trade, recommended by King Venkatramon of NeoTrader
,Godrejcp: Sell down 1,050 or more 1,080 on rallies, stops 1,095, target 950
This counter has a long body candle that is seeing a decline in volume. Violation of 320 levels has led to further decline despite encouraging Q3 results, so more recession shops may occur.
See full image
,Sunflag: Buy above 230, stop 222 targets 255
There have been frequent reports about this stock, which has helped in reversing it despite some pressure. It saw a revival on Thursday and RSI also shows a positive deviation that can promote speed. Look to start for a long time.
,Piind: Sell on CMP and rallies 3,250, stop 3,275, target 3,165
Chemical stocks have been unable to show signs of a revival. The sharp decline of PI Industries below 3,400 has recorded a sharp decline. With the increase in the market uncertainty, one should look at the increasing participation on the negative side.
Also read The biggest challenges of nykaa: twist around fashion business, margin improvement
King Venkatraman is co-founder, neotradder.
Disclaimer: The views and recommendations given in this article are of individual analysts. They do not represent the ideas of mint. We recommend investors to investigate with certified experts before taking any investment decisions.
