Buy These Two Stocks for Near Term Gains While Nifty Reverses Upside Trend
On Wednesday, Nifty has reversed down sharply after showing an upside bounce in the last three sessions. After opening on a negative note, Nifty slipped into weakness in the early part of the session, closing the day with a hefty loss of around 265 points.
A long negative candle indicates a reversal pattern of the last few sessions up move. This is a negative indication and signals more downside in coming sessions.
Nifty is forming lower highs and lows on the daily chart and is expected to revisit the lower gap support of 14350 in the short term. This could also mean further down move below the crucial weekly 10 period EMA as per weekly chart at 14580 levels.
The short term trend of Nifty seems to have reversed down after a small upside bounce. Next lower levels to be watched around 14350-14300 in the next few sessions before showing another round of small upside bounce from the lows. Any pullback rally could find resistance around 14675-14750.
1. Sequent Scientific Ltd – (CMP Rs 248.05) Buying can be initiated in SEQUENT at CMP (Rs 248.05), add more on dips down to Rs 238, wait for the upside target of Rs 272 in the next 3-4 weeks. Place a stoploss of Rs 232.
2. Balrampur Chini Mills Ltd – (CMP Rs 218) Buying can be initiated in Balarmpur Chini at CMP (218), add more on dips down to Rs 210, wait for the upside target of Rs 240 in the next 3-4 weeks. Place a stoploss of Rs 203.