The market closed in the red after four straight sessions on August 28 due to profit booking and fears of a global recession. Banks, auto, metals and pharma stocks pulled the market down while IT outperformed, rising over a percent.
The BSE Sensex was down 189.43 points at 37,451.84 while the Nifty 50 fell 59.30 points to 11,046.10 ahead of the expiry of August futures & options contracts, forming a bearish candle on daily charts.
But, the expected decline is unlikely to damage the recent uptrend status of the Nifty, he said, adding important supports to be watched are around 10,900-10,850 levels, where one may expect a reliable upside bounce from the lows.
The broader markets were also caught in a bear trap with the Nifty Midcap index falling 1 percent and Smallcap index losing 0.65 percent.
According to the pivot charts, key support level is placed at 10,979.3, followed by 10,912.5. If the index starts moving upward, key resistance levels to watch out for are 11,121.3 and 11,196.5.
Nifty Bank closed at 27,804.30, down 1.14 percent on August 28. The important pivot level, which will act as crucial support for the index, is placed at 27,594.13, followed by 27,383.96. On the upside, key resistance levels are placed at 28,055.03 and 28,305.77.
In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns:
Sudarshan Sukhani of s2analytics.com
Buy Nestle India with stop loss at Rs 12100 and target of Rs 13200
Buy Tata Consultancy Services with stop loss at Rs 2200 and target of Rs 2300
Sell Tata Motors with stop loss at Rs 121 and target of Rs 109
Sell Tata Steel with stop loss at Rs 341 and target of Rs 331
Mitessh Thakkar of mitesshthakkar.com
Buy Tata Global Beverage with a stop loss of Rs 272 and target of Rs 300
Sell Maruti Suzuki with a stop loss of Rs 6160 and target of Rs 5950
Buy ICICI Prudential with a stop loss of Rs 408 and target of Rs 434
Buy Voltas with a stop loss of Rs 616 and target of Rs 644
Prakash Gaba of prakashgaba.com
Buy ICICI Prudential with target at Rs 430 and stop loss at Rs 405
Buy PVR with target at Rs 1650 and stop loss at Rs 1455
Buy Tata Global Beverage with target at Rs 300 and stop loss at Rs 270
Buy Voltas with target at Rs 640 and stop loss at Rs 616
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