INSUBCONTINENT EXCLUSIVE:
Stock Market, Stock Calls, Buzzing Stocks, BSE, NSE(Photo: Shutterstock)3 min read Last Updated : Oct 07 2024 | 7:26 AM ISTNifty
The week began on a negative note, and as it progressed, the selloff accelerated
Any minor bounce was quickly sold into, leading Nifty to end the week with a sharp 4.31 per cent decline, closing just above the 25000
mark.
The bears were in full control, effortlessly breaking through support levels and erasing more than 1200 points from the all-time high
In our previous outlook, we identified the key resistance level of 26200 - 26300, the 100% target of the Year 2023 flag breakout, and after
failing to surpass that level, prices precisely corrected from there.During the initial part of August and September, we saw nervousness in
the market followed by a rally to new highs
However, the start of October paints a different picture as the market has broken below the trendline connecting the higher lows of the last
two months, confirming a channel breakdown.With prices closing just at the key 50 EMA support, this has been one of the sharpest weekly
drops in recent times, forming a strong bearish candle on the weekly chart, signaling more potential downside ahead
Given these observations, further pain is on the cards, with the next key support around the September swing low of 24750 followed by
24500.However, traders should exercise caution with short positions, as some in-between bounces cannot be ruled out due to oversold
conditions in momentum indicators on intraday charts.On the upside, Friday's high near 25500, which coincides with the 20 EMA and the
channel breakdown level, will act as a stiff resistance, with 25300 being the immediate resistance before that
Volatility is expected to remain elevated, and traders should avoid unnecessary risks
Its also crucial to monitor global developments, as well as regulatory updates, which have been contributing to the recent market
March swing lows, prices saw a strong rally, doubling from Rs 320 to Rs 640
However, over the last couple of months, prices entered a correction phase.This week, despite a broad-based sell-off in the broader market,
prices outperformed and resumed their uptrend after finding support at the 61.8 per cent retracement of the previous rally and at the prior
breakout zone.On the daily chart, a bullish range breakout, accompanied by significant volume, signals positive momentum for the
Despite the overall market downturn this week, the stock broke its previous high, confirming a bullish breakout and entering uncharted
The breakout was accompanied by a surge in volume, signaling strong momentum, and we anticipate continued outperformance.
Hence, we
recommend to BUY LALPATHLAB around Rs 3,495 - Rs 3,480 | SL: Rs 3,350 | TGT: Rs 3,816(Rajesh Bhosale is an equity technical analyst at Angel
Views expressed are his own.)First Published: Oct 07 2024 | 7:26 AMIST
