Use short-term rally to sell at higher levels: Manav Chopra, Head - Technical Analyst, Monarch Networth Capital

In a chat with ET Now, Manav Chopra, Head - Technical Analyst, Monarch Networth Capital, says market may crack 8000 and go down towards 7900-7950. Edited excerpts



ET Now: On the charts how are you seeing the trend?

Manav Chopra: We have already seen the market declining from recent highs and most importantly the breakdown of the support on Monday was accompanied by a falling gap. So as long as we trade below 8150-8200, the markets would continue to witness selling pressure at higher levels. For the immediate front, the support would be at 8050. So looking at the oscillators on the daily charts, I think we should maintain a negative bias in the market. Any short term rally for the market should be actually used to sell at higher levels. We do not see this a market sustain beyond 8200 for the near term perspective. So at the current levels, it is a good opportunity to initiate short position in case there is a short term pullback. We do expect the index to see a series of declines and this should be corrective in nature because the long term trend is still intact. There is a high possibility we will break 8000 and eventually go down towards 7900-7950.

ET Now: Your strategies for today?

Manav Chopra: Yes, my first call is a sell on Jindal Steel. The stock has actually observed a corrective rally from its recent lows of Rs 57 and has breached an important support levels and has closed below it, the volume also indicates that we have observed a good breakdown into the charts. So Rs 65 can be the stop loss. We expect lower targets of Rs 55.

My second call is buy on UPL the prices recently has bounce from its oversold levels on the intraday charts and there is a good formation that we have observed on the daily perspective so Rs 575 can be the stop loss on the lower side and we will expect an upside target of Rs 610.