The Nifty ended sharply lower on Friday, extending its losing streak after a one-day pause, as heavy selling pressure weighed across the market. Banking, energy and auto stocks bore the brunt of the selloff. The index also slipped below its 200-day moving average on a closing basis.
Rupak De, Senior Technical Analyst at LKP Securities, commenting on the current trends, said the index remained weak throughout the session as it stayed below the 20 EMA on the hourly chart, suggesting capitulation by the bulls after a futile attempt to defend the crucial long-term moving average.
“As a result, short- to medium-term sentiment is likely to remain weak as long as the index trades below 25,500. On the downside, the decline could extend toward 24,700 in the short term,” he added further.
Here are 2 stock recommendations for Tuesday: