Nifty fell for a third day in a row amid selling pressure in auto, financials and FMCG stocks though selective buying in auto and energy stocks checked the losses. The index has remained in the bears’ grip, as the index stayed below the 21 EMA for yet another session, confirming a bearish short-term trend.
Commenting on the current trends, Rupak De, Senior Technical Analyst at LKP Securities said that the overall market breadth remains weak with RSI also maintaining a bearish tone and continuing with its bearish crossover. “On the lower end, the index once again found support at the 50 EMA. However, repeated retesting of a moving average within a short span raises doubts about the strength of this support. A decisive slip below 25,700 could trigger a correction towards 25,500–25,400. On the higher end, the 25,950–26,000 zone is likely to act as a crucial resistance area,” De said.
Here are 2 stock recommendations for Thursday:
