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Bearish Sentiment for EMAMI

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Emami stock price chart with indicators, NSE market
emami

Looking at the chart for Emami (NSE: EMAMI), here are some key points to consider for intraday short selling tomorrow:

  1. Downward Trend: The stock has shown a recent downward trend, with a drop in price from its highs. This can indicate a potential continuation of bearish sentiment.
  2. Moving Averages: The stock is trading below the Exponential Moving Averages (EMA), specifically the 5-day (678.70) and 21-day (695.70) EMAs. Trading below these averages is a bearish sign, indicating that short-selling might be advantageous if the stock stays below these levels.
  3. RSI (Relative Strength Index): The RSI is at 41.54, which is close to the oversold territory but not quite there yet. This suggests some bearish momentum, but also that selling pressure may slow down soon. If the RSI drops further, it could increase the likelihood of a continued downtrend, but caution is needed as RSI near 30 could signal a reversal.
  4. Support and Resistance:
    • Support: There appears to be recent support around ₹670. If the stock breaks below this level, it could continue downward.
    • Resistance: Resistance is likely around the 5-day EMA at ₹678.70 and the 21-day EMA at ₹695.70. If the stock rises above these, it might indicate a reversal or end of the short-selling opportunity.

Recommendation for 8 Nov 24:

  • If the stock opens below or near ₹670 and continues downwards, it could be a good intraday short-selling opportunity.
  • Set a stop-loss around ₹678-₹680 to manage risk in case of a reversal.
  • Target levels for short selling could be around ₹660 or lower if the bearish momentum continues.

Ensure you monitor the opening price and market sentiment, as these factors will be crucial in confirming the short-selling opportunity.

Disclaimer: This analysis is for informational purposes only and should not be considered a recommendation to buy, sell, or hold any securities. We are not SEBI-registered financial advisors, and this information does not constitute financial advice. Please conduct your own research and consult with a qualified financial advisor before making any investment decisions. Investing in the stock market involves risk, and past performance is not indicative of future results.

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