2 hrs ago
Amol Athawale Identifies Nifty Support, Recommends Three Short-Term Stocks
The stock market fell for the third day in a row.
Higher oil prices and global bond yields made investors nervous.
Amol Athawale says the market’s technical picture still looks weak.
He says the Nifty 50 must stay above important support levels to avoid another sharp fall.
However, the market may briefly recover if investors buy shares after the recent decline.
Athawale selected three stocks for possible gains over the next one to two weeks.
They are Canara Bank, Steel Authority of India, and Bharat Dynamics.
Each stock has a target price and a level where traders may consider limiting losses.
Amol Athawale says 23,600 is a key support zone for the Nifty 50.
The Nifty and Sensex fell about 0.5% each for a third straight session on Wednesday, 2 September.
Athawale says 23,800 on the Nifty and 76,100 on the Sensex are crucial near-term trend levels.
He recommends Canara Bank, Steel Authority of India, and Bharat Dynamics for the next one to two weeks.
The suggested targets are ₹135, ₹210, and ₹1,340, with stop-loss levels of ₹121, ₹188, and ₹1,210, respectively.
- Who
- Amol Athawale, Vice President of Technical Research at Kotak Securities, and short-term traders.
- What
- Athawale identified key Nifty 50 and Sensex levels and recommended three stocks for the next one to two weeks.
- Where
- The recommendations concern India’s Nifty 50, Sensex, and listed Indian companies.
- When
- The outlook was issued for Thursday, 3 September, after markets fell on Wednesday, 2 September.
- Why
- Rising oil prices linked to renewed US-Iran tensions and higher global bond yields weakened market sentiment, while technical support levels were under pressure.
Cautious Technical View
Potential Short-Term Recovery
Overall market direction
Cautious Technical View
Athawale says the technical setup remains weak and that the market has been breaching key support levels with relative ease.
Potential Short-Term Recovery
Experts cited in the article believe the market may be oversold and could see short covering on Thursday.
Key index levels
Cautious Technical View
Sustaining below 23,800 on the Nifty or 76,100 on the Sensex could drag the indices toward 23,600 and 75,400.
Potential Short-Term Recovery
A sustained move above 24,100 on the Nifty or 77,200 on the Sensex could lead to a recovery toward 24,200–24,250 and 77,500–77,700.
Stock outlook
Cautious Technical View
Each recommendation includes a stop-loss level, reflecting the risk that the bullish view may fail if support breaks.
Potential Short-Term Recovery
Athawale expects Canara Bank, Steel Authority of India, and Bharat Dynamics to continue or resume upward moves while they hold their respective support levels.
Key facts
- Nifty 50 support
- A decisive break below 23,600 could trigger another phase of capitulation, according to Athawale.
- Near-term Nifty level
- 23,800 is a crucial trend-deciding level for Thursday.
- Near-term Sensex level
- 76,100 is a crucial trend-deciding level for Thursday.
- Canara Bank
- Previous close ₹126.30; target ₹135; stop loss ₹121.
- Steel Authority of India
- Previous close ₹196.50; target ₹210; stop loss ₹188.
- Bharat Dynamics
- Previous close ₹1,253.70; target ₹1,340; stop loss ₹1,210.
- Recommended period
- The three stock ideas are intended for the next one to two weeks.
Quotes
Amol Athawale
Vice President of Technical Research at Kotak Securities
“The stock is expected to rebound and witness a fresh move from the current levels with a favourable risk and reward perspective. As long as the stock is trading above ₹121, the bullish texture is likely to continue. Above which, the stock could move up to ₹135.”
livemint.com
“A decisive break below the 23,600 support zone could trigger another phase of capitulation. For Thursday, 23,800 on the Nifty and 76,100 on the Sensex will remain crucial trend-deciding levels.”
livemint.com
Sources
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