Buy, Sell or Hold? Ahead of the US Fed meeting, the Indian market closed with nearly one per cent loss on Tuesday. Extending weakness to the second day, benchmark Nifty50 slipped below 16,500 with the index declining by 147.15 points or 0.88% to end at 16,483.85. Similarly, the Sensex slumped by almost 500 points as the 30-share index took a cut of 0.89% to settle at 55,268.49.  

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The Nifty had stepped into a short-term consolidation mode on July 25, said Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas. 

"It witnessed follow through selling on July 26. The hourly chart shows that the index is parting from an upper channel line on the downside & on the way down, it has breached the key hourly moving averages. The hourly Bollinger Bands have started expansion thus making way for the index on the downside," said Ratnaparkhi.  

Also, the Nifty has entered into a recent gap area on the daily chart and can move down further towards 15360 in order to fill up the gap area, he said, adding that on the higher side, immediate resistance zone shifts downwards to 16570-16600 

Further, Nifty Midcap and Smallcap dropped by 1.25 and 1.48% respectively in the broader market.   

On the sectoral front, all Nifty indices, except Media, slipped in the red with Nifty IT declining the most with 2.83% drop on Tuesday.  

Meanwhile, certain stocks came in focus on Tuesday. These stocks were EI Hotel, Zomato and Tanla Platforms. Shares of EI Hotel closed higher by more than seven per cent, Zomato dropped over 12% and Tanla Platforms were locked in 20% upper circuit.  

Here is what Pravesh Gour, Senior Technical Analyst, Head of Research, Swastika Investmart Ltd, suggests investors should do with these stocks. 

EIHOTEL: The Stock is bottoming out with bullish inverse head and shoulder formation with the surge in volume on the Daily Chart. The stock has also been forming a higher top and higher bottom formations on the weekly chart.  

The pattern suggests an immediate target of Rs 170, while it has the potential to move further upside till the 200 level. On the downside, Rs. 140 will be an immediate support level. MACD (Moving average convergence divergence) is supporting the current strength whereas momentum indicator RSI (relative strength index) is also positively poised. 

ZOMATO: The Primary structure of the Counter is continuously following the downtrend. The overall structure is also very bearish as it trades below all-important moving averages. The stock has broken its major demand level of Rs. 50, now it is trading around Rs. 41. On the Downside, one can sell the stock for Rs. 35. On the Upside, the Buyer has to wait for Rs. 50 for taking a new Position in the Stock. 

TANLA: The counter is forming a down sloping channel formation & it has also given a breakdown of horizontal line around Rs. 1000 level. The Overall structure is looking weak as it trades below its all-important moving averages, however, it is having a demand zone near 600. On the upside, 1000 has become an immediate resistance area; above this, we can expect a run-up towards 1200+ levels in the near term. On the downside, if it breaks the 600 level then 500 is the next support level.