Hot Stocks | Piramal Enterprises, Indiabulls Housing are two sell calls for the next 3-4 weeks

The market ended with decent gains on February 3 after the sharp fall seen on February 1, which was triggered due to a lack of sufficient stimulus measures in the Union Budget.

Last week’s fall has led to Nifty reversing its uptrend as it closed below the trend reversal levels of 11,832 and the index formed a big red candle on the weekly charts.

This indicates that the selling was intense and the downtrend which has begun looks set to continue.

Technical indicators too are giving weak signals. The 13-day simple moving average, which was till recently trading above the 50-day simple moving average, has now cut it from above.

Momentum indicators like the 14-day RSI and MACD too are in decline mode, which is not a healthy sign.

Nifty could now head towards the next supports of 11,500 in the near-term and if these levels do not find support, then Nifty could head towards 11,355 which is the 61.8 percent retracement levels of the recent up move that began in September 2019.