The broader Nifty index has tested the key 200 exponential daily moving average (DMA) in trade today. A close below this level will signal a reversal in bullish sentiments.
Manish Shah, Technical Analyst at Fortune Financial Services (India) Limited expects the Nifty to drop to 5,000 levels in the short term. The long term Nifty trading range is seen between 4,600-5,600 levels, Shah told NDTV Profit today.
Shah says the rupee might depreciate further and it may reach 52 to the US dollar in the next two weeks. The defensive IT sector is likely to do well while metal and banking stocks are likely to underperform.
Here are some recommendations from Manish Shah:
1) Wipro:
Buy with a target price of Rs 460 per share and a stop loss of Rs 421 per share.
2) HCL Tech:
Buy with a target price of Rs 522 per share and a stop loss of Rs 473 per share.
3) Tata Steel:
Sell with a target price of Rs 375 per share and a stop loss of Rs 460 per share.
4) SBI:
Sell with a target price of Rs 1,925 per share and a stop loss of Rs 2,200 per share.
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