Two Short-term Trading Ideas That Can Give 8-11% Return

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The Nifty fell 2.21 percent on September 21, the highest ODI fall since May 18, 2020.

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Bank Nifty continued its performance, falling 3.36 percent to close at 21,290. The Bank Nifty has been at a low since August 3, 2020, while the Nifty has been at a low since August 14.

Attempts to recover the Nifty made on 31st August but failed to overcome it. So, the bearish engulfing pattern recorded in the week ending September 4 is intact and the implications of the same are still there.

Medium-term top to Nifty level of 11,794.

Technologies suggest that the Nifty is leading a healthy correction this time around. The index failed to recover 50 percent of its recent recovery from 11,185 to 11,618.

This setup shows that the recovery from the recent 11,185 is a dead cat bounce in the overall down-trend.

The 200-day EMA and SMA for the Nifty are placed at 10,832 and 10,775, respectively, which serve as strong support in the current down-trend.

This means we can expect almost 5 percent more damage from current levels. Indicators and oscillators are bearish on the daily ...
... charts.

The RSI is below the 50 levels and the MACD has reached below its signal line.

Previous support for the 11,400-11,450 level has not changed its role as resistance to the Nifty and if we do not see what is above 11,450, the trend should only be considered bearish.

The trend of the market has become bearish and it is advisable to reduce trading long positions. There are a lot of short-sale opportunities in stocks and it should be caught.

The Nifty is likely to see targets of 11,832-11,775 in the coming weeks.

Midcap and smallcap indices are expected to fall in the short term.

Here are two sell recommendations for the short-term:
Mahindra and Mahindra Financial Services | Sell | LTP: Rs 126 | Target price: Rs 112 | Stop loss: Rs 133 | Downside: 11%
The stock broke the key support of Triple Bottom-Place at Rs 126.50.

The stock price began to form lower tops and lower bottoms. Short-term moving averages are lower than medium-term moving averages.

The NBFC sector Nifty has been performing poorly for the last two weeks.

Axis Bank | Sell | LTP: 422.30 | Target price: Rs 390 | Stop loss: Rs 445 | Downside: 8%

The bear head and shoulder formed on this stock daily chart.

Bank Nifty has been weakening the Nifty by a huge margin over the last two weeks. Axis Bank has a healthy weight in Bank Nifty.

The stock broken from the bearish flag pattern on the daily chart with good volume.

Indicators and oscillators are bearish on short-term charts.

Expert:
Vinay Rajani technical research analyst at HDFC Securities

Disclaimer :
The perspectives and investment tips given in this section are the expert’s own. Not that of the website or its management. We encourage clients to check with certified experts before taking any position in the stocks/shares mentioned.
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