Hot Stocks | OFSS a buy call for short term; sell on HDFC Bank, Ambuja Cements
Episode 2905, Sep 24, 2020, 12:30 AM
On September 23, the benchmark index witnessed a gap up opening and retested the trendline resistance formed on an hourly timeframe.
A strong pullback in the final hour of the trading session got the index near its yesterday's close and made it shut the day with a marginal loss.
The worldwide concerns over the COVID-19, September expiry rollovers and growth worries kept the domestic market under pressure.
Since May 28, 2020, Nifty has never closed below its 50-day exponential moving average on the daily chart.
But in the last couple of trading sessions, the index closed below its 50-day EMA which is a sign of concern in the coming trading sessions.
The index has formed smaller degree rounding top formation on the daily timeframe. A break below 11,000 will open the gate for another 3 to 4 percent fall in the index.
An unexpected fall has signalled a weakening uptrend and a stop should be placed for any longs.