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Equity Tips
Nifty likely to face resistance around 9874; 4 stocks which can give up to 10% return

The Indian Equity market went through series of correction period during the five straight trading session with both the major index losing about 4 percent from their earlier peak.

The Nifty breached its crucial support level at 9,850 with about 103 points down to close with a negative bias at 9,710 level. On weekly basis, Nifty shredded about 3 percent with negative bias indicated in Friday’s trade.

On the weekly chart, Nifty made a strong bearish pattern indicating a further consolidation going forward. Further, a weak RSI at sell-zone where price is trading below crucial support level indicates a negative outlook for the Index coupled with downtrend momentum depicted by MACD trading below its Signal Line.

On the Moving Average Analysis, the index just went below its 50-day EMA indicating a negative signal. The Nifty is currently facing a resistance at 9,874 and support level at 9,540 as indicated.

On its weekly chart, the stock made a bullish reversal pattern which factors the negative movement going forward and further supported by volume growth on daily basis.

On the technical front, the stock is currently trading at favourable regime with RSI at 55 supporting the buying sentiment coupled with bullish crossover indicated by MACD at 10. The stock is currently facing resistance at 244 levels while its support level is placed at Rs204.

Further, the stock witnessed considerable raise in volume which further added the negative outlook. On the weekly price chart, the stock continued to form a bearish candlestick pattern as it decisively closed below its crucial support level.

On a technical basis, the stock continued to trade on negative regime indicated by weak RSI 43 followed by the bearish crossover of MACD at the regime.

Further, the price of the stock is currently trading below its 50-days EMA indicating a downtrend momentum in short-term while its long term trajectory is inclined towards the bullish regime. The stock is currently facing a resistance level at 803, while the support level will be seen at 734.

Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
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