Shriram Transport: Initiate shorts, exit longs
The support level near Rs 640 has been surviving for several attacks in the last few months and is once again under siege today. However, it seems to be giving in as indicated by the fact that the momentum reading of RSI is seen slipping below 40 levels as of now. A break below the level on the fourth attempt is said to be a change in trend status. Hence, shorts can be initiated while longs should be exited. Next support zone is around Rs 605 levels only.
ICICI Pru Life on path to recovery
It seems like the bulls are putting up a good fight in ICICI Pru after having got pushed back some in recent weeks. The stock had shown strength in the upside by moving well past the 62% retracement. Now prices are pulling back into that same level, and yesterday have shown inclination to remain up despite a weak market. The stock may look for some upside action in case the market rights itself today.
Bajaj Finance can fall if market softens
After a rather spirited run, prices of Baj Finance have been trading sideways for the past few sessions and the rise has broken the support trendline. It is currently placed at the level of former price swing highs but once the Rs 3500 level is lost then the next bunch of consolidation zones are seen only around the Rs 3,380 levels. So a decline to those areas can be envisaged if the market turns soft from here.
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