Outlook of Nifty and Stock Picks for Mint Live: March 12

Technical Observation: Nifty

Nifty continued to show sharp declines in the last couple of sessions and is currently trading lower by 180 points amidst recovery. After opening on a downside gap of 192 points, the market slipped into further weakness soon after the opening. Currently showing recovery from the lows from the low of 23556.

Bearish pattern like lower tops and bottoms continued on the daily chart and Nifty has formed a new swing low on Thursday at 23556 levels. But, still there is no confirmation of any lower bottom formation in the market.

The underlying trend of Nifty remains weak. Any pullback up to 23750-23850 could be a sell on rise opportunity. Immediate support is placed at 23500.

Stock Picks:

Buy TATAPOWER @ 394, Target 415, Stoploss 380, Timeframe 1 week.

After a minor weakness recently, the Power stock has witnessed sharp bounce back from the lows in the last couple of weeks. Currently placed at the edge of breakout of the hurdle around 395-400. Bullish pattern like higher tops and bottoms is intact on the daily chart.

Sell INDUSIND BANK @ 838, Target 795, Stoploss 860, Timeframe 1 week.

The banking stock has witnessed a sharp weakness so far this week and is currently trading lower. The crucial lower support of 200day EMA has been broken down decisively at Rs 877 on Wednesday. Bearish chart pattern like lower tops and bottoms is visible on the daily chart. The daily 14 period RSI shows negative indication.