Kiran Jani, Head of Technical Research at Jainam Broking, said benchmark Nifty50 has strong support at 22,200-22,300 levels. "As present, the index is looking promising at the current market price. Keep a strict stop loss of 22,100, expecting an upside range of 22,800 very soon. Nifty Bank will be a conditional buy above 48,000," the market expert told Business Today on Wednesday.
On the stock-specific front, he selected two Adani Group stocks, Adani Power Ltd and Ambuja Cements Ltd, based on their price-chart patterns for short-term trade. "If you look at Adani Power price charts, the counter is showing a rounding bottom pattern breakout on intraday charts. On daily charts, there's a rectangle pattern breakout. Investors can accumulate the counter in the Rs 510-515 range, keeping a strict stop loss below Rs 500. Expected price targets will be Rs 550-560 in the upcoming time," Jani stated. Adani Power shares were trading 0.47 lower at Rs 508 today.
"Another (stock) call which we like is Ambuja Cements. The price structure is showing strength. One can enter at the current market price with a strict stop loss of Rs 480, expecting targets of Rs 535-540," he also said. Ambuja's stock was down 1.96 per cent at Rs 485.85.
Meanwhile, Indian equity benchmarks fell sharply in afternoon trade, dragged by technology, metals and state-owned lenders. Broader indices (mid- and small-cap shares also slumped.
16 out of the 19 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty IT, Nifty Metal and Nifty PSU Bank were underperforming the NSE platform by falling as much as 3.87 per cent, 1.53 per cent and 1.10 per cent. In contrast, Nifty Private Bank and Nifty Financial Services rose 0.39 per cent and 0.20 per cent, respectively.
The overall market breadth was weak as 2,384 shares were declining while 1,320 were advancing on BSE. 153 stocks stayed unchanged.
Foreign institutional investors (FIIs) sold Rs 2,823.76 crore worth of shares on a net basis during the previous session and domestic institutional investors (DIIs) bought Rs 2,001.79 crore worth of shares, exchange data showed.