Nifty ended with cuts for the third day in a row, dragged by IT stocks, with selling pressure also seen in financials and the auto pack. The trend remains weak as the index has moved below the 21 EMA.
Rupak De, Senior Technical Analyst at LKP Securities, attributed the decline to profit booking during the session. “On the derivatives front, 26,000 PE PUT writers unwound their positions as the index slipped below this level. Nifty has retraced more than 50% of the previous rise, casting doubt over the sustainability of the recent rally. On the downside, support is placed at 25,900, while on the upside, the 26,000 level is likely to act as the initial resistance,” De said.
Here are 2 stock recommendations for Tuesday: