Nifty opened sharply lower at 19,981 and extended its decline throughout the day, reaching an intraday low of 19,879. Nifty eventually closed with a loss of 232 points, marking a 1.15% decrease, the largest single-day loss since March 13th of this year. This decline was primarily influenced by selling pressure in index heavyweights HDFC Bank and Reliance Industries.
Zydus Lifesciences Ltd.
On Wednesday, Zydus Lifesciences Ltd stock closed 2.68% lower. The stock closed below its moving average ribbon, accompanied by a significant bearish candle and a lower high formation. The high trading volume suggests distribution, and the stock also fell below the 50-day and 20-day moving averages on Wednesday. Additionally, the MACD has recently given a bearish signal, and the RSI is approaching bearish territory after encountering resistance near the 60 zone during recent consolidation. The Stochastic oscillator is declining from extreme levels, and both the KST and TSI have provided fresh sell signals. The stock has also closed below the super trend, indicating it is below key support levels. In summary, the stock’s performance is bearish, and a further decline below Rs. 621 may lead to a test of Rs. 605, while resistance is expected at the Rs. 632 level.
Indiamart Intermesh Ltd.
Indiamart Intermesh Ltd. closed Wednesday’s trading session with a minor gain of 0.12%. The stock closed at a critical support level, which was previously a resistance level. It also closed below the moving average ribbon, and the MACD line dipped below zero, signaling a bearish trend. The stock is trading below important moving averages, being 1.37% below the 50-day moving average and 2.87% below the 20-day moving average. The RSI is on the verge of entering bearish territory, although it is still holding onto the super trend support. The Elder’s impulse system has generated a series of bearish bars, and both the KST and TSI indicators are in bearish setups. The negative divergences in RSI and MACD have been confirmed. In summary, the stock appears to be on the verge of a breakdown, and a further decline below Rs. 3,000 may lead to a test of the Rs. 2,888 level, while resistance is expected at Rs. 3,040.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.