Close to selling point, time to be cautious

Published February 19, 2019

The market showed a small loss Monday, and Nifty 50 (NIFTY) ended the day at 10641 points, which is a decline of 0.78 per cent. The index has now closed down for the seventh day in a row. 419 shares showed a gain and 1051 showed a loss. 65 shares were unchanged and closed at the same price as the previous day. There was no trading in 190 shares. The value of the total volume of shares and primary capital certificates traded Monday was approximately 264.0 billion.

Among the most liquid stocks on NSE there are a few that are hovering around their supports. A small crack and close below support area could lead to fresh selling in them. However, these big names also take cues from the broader market, and if the markets decide to turn up, these stocks may establish a support and return to their up journey. Remember that the Nifty index closed near its support around 10600 points.

Housing Development Fi (HDFC.NS) Close: 1874.85

Housing Development Finance Corporation Limited does not show any clear trend in the medium term. The stock has developed a rectangle and a head and shoulders formation and has closed marginally below the neckline. If the stock continues to go down it would be a sell signal and may go down further to 1780 rupees or lower. There is support around 1780 and 1655 levels. On the upside there is resistance between 1930 and 2007 rupees.

Aurobindo Pharma Limit (AUROPHARMA.NS) Close: 716.75