Nifty gave a 200 point fall and today also opening will be a gap down of 60 points looking at Asian screen which are down between 2-5%. Its a Global Sell off and today we would be breaking 4900 range which have been defended from past 16 days.
Watch out for 4839 on Nifty Spot below it more pain will come.
I am covering 3 Index Stocks having weight age of 13,9,7% in Nifty.
Reliance Industries
RIL took support at its downward trend line. Break of the same will lead to 720 odd levels.
6% fall in single day that also in main index component gives the severity of situation and panic selling which is surrounding market participants.
Stochastic on Daily charts have given a fresh sell.
Sell below 780 Tgt 768,750 and 735
Buy above 800 Tgt 816,835 and 848
State Bank of India
SBI another index heavy weight in both Nifty and Bank nifty is again near its crucial support in rising trendline . Break of the same will lead to 1899-1904 range which is the crucial support zone for SBI.
On Upside 1973 is rock solid resistance for the stock.
Sell below 1920 Tgt 1905,1875 and 1850
Buy above 1947 Tgt 1964,1973 and 1991
Infosys
Infosys will be benefiting from Rise in rupee but again the hedging losses can nullify the effect of rupee rise.
Technically Stock is taking support at 2336 levels which is the middle of the trading range of Infosys. Break of same will lead to retest of lows o 2170.
Stochastic has generated a fresh sell on daily charts.
Sell below 2336 Tgt 2322,2291 and 2247
Buy above 2367 Tgt 2397,2422 and 2472