5500 can be tested on the Nifty: Sandeep Wagle

In a chat with ET Now, Sandeep Wagle, Founder & MD, APTART Technical Advisory Services, www.aptartindia.com, gives his views on the market. excerpts:


ET Now: Do you think the trade orientation has changed and markets have rediscovered momentum on the downside?

Sandeep Wagle: I would agree with you as far as the Nifty is concerned. There is a very clear shift on the downside. What has been holding on over the past few weeks has suddenly changed. I am seeing kind of head and shoulder pattern which is a bearish pattern. If my analysis is right, over the next few days we will go to 5550-5600, probably even 5500 can be tested. I do not see too much of lower levels than that. I do not see 5850 being crossed on the upside. In case one gets a bounce back, 5800-5820 should be the level to sell and play for at least 200-250 point on the downside.

ET Now: What is it that you find attractive on the charts?

Sandeep Wagle: I have a buy in Radico Khaitan. Buy it with a stop loss of Rs 128 and target of Rs 155. I have a sell in R-Power with a stop loss of Rs 70 and target of Rs 64.