Headline index Nifty ended lower on a volatile Friday, marking its third straight session of losses amid selling in IT and consumer stocks, though gains in financials helped limit the downside. Nifty trading below the 50EMA indicates near-term weakness.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said that the index has been declining since forming a double top around 26,100 on the hourly timeframe. “Recently, the index slipped below a critical moving average, setting a deeper bearish tone. The crucial resistance is placed at 25,600; as long as it remains below this level, sentiment may continue to favor a sell-on-rise strategy. On the lower end, support is placed at 25,400, and a fall below this level might further boost the bears’ morale,” De said.
Here are 2 stock recommendations for Monday: