By Riyank Arora

On Tuesday, the benchmark index opened with a gap down of 109 points and ended on a negative note. The Nifty ended 239 points lower, while the Sensex was down by 736 points. Among sectors, the Nifty IT Index led the fall, dropping nearly 1071 points in today’s session. 

Most of the media stocks saw good selling pressure in today’s session. Technically, the market is trading around a major support level of 21,800. Any break below 21,800 should push the downside further on the index towards 21,600 and 21,500.

Stock Recommendations:

BPCL

SELL | CMP: 557.70 | TARGET: 515.00 | SL: 570.00

The stock has given a good breakdown below its recent swing low of 580 on the daily charts. The broader picture suggests that the next support is placed only near 480, 500, and 515 levels so an initial target of 515 can be kept on the stock. 

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Sharp volume sell-off in the last few trading sessions and negative market sentiment for oil marketing companies make BPCL a good short candidate at current levels.

PFC – Power Finance Corporation

SELL | CMP: 362.55 | TARGET: 335.00 | SL: 376.00

The stock has given a good breakdown below its recent swing low of 368 on daily charts indicating the possibility of a strong downside move in the upcoming few days.

Traders are suggested to maintain a strict stop loss at the 376 mark as the stock should eventually drift down towards 335 and 325 as the downside move extends further.

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MRF

Sell | CMP: 1,32,679 | SL: 1,35,500 | Target: 1,27,500

The stock has given a good breakdown below its recent swing low of 1,36,100 on the daily time frame. The overall structure is looking weak as the stock has seen good selling pressure in the last two days with a good surge in volumes. 

Any pullback towards the 1,33,000 – 1,33,500 zone should be used as a selling opportunity on the stock for potential targets of 1,27,500 and below with a strict set-stop loss at 1,35,500 mark.

(Riyank Arora, Technical Analyst, Mehta Equities. Views expressed are the author’s own. Please consult your financial advisor before investing.)