Quick correction likely
For the traders now, 79,700 would be the immediate resistance zone. Below which, market could retest the levels of 79,100-79,000. On the flip side, we could expect 80,000-80,1150 on the higher side
Mumbai: On Tuesday, the benchmark indices witnessed a profit booking at higher levels as BSE Sensex was down by 35 points. Among sectors, IT index outperformed, rallied over one per cent whereas PSU Bank index lost the most, shed 1.8 per cent.
Technically, after gap-up open, the market consistently facing selling pressure at higher levels. From the day’s highest point, the index corrected over 600 points.
In addition, small bearish candle on daily charts and temporary overbought conditions on intraday charts indicating strong possibility of one quick intraday correction from the current levels.
However, the medium-term texture of the market is still in to the positive side.
“For the day traders now, the 79,700 would be the immediate resistance zone,” said Shrikant Chouhan, head (equity research), Kotak Securities.
Below the same, the market could retest the level of 79,100-79,000. On the flip side, above 79,700 breakout we could expect 80,000-80,1150 on the higher side.
“For the day traders now, the 79,700 would be the immediate resistance zone,” added Shrikant Chouhan, head (equity research), Kotak Securities.
STOCK PICKS
Tarc Ltd.| Buy | CMP: 208.04 | SL: 185 | TARGET: 250
The stock has given a strong breakout above its recent swing high resistance mark of 204.80 and successfully closed above it. With volumes surging to almost four times its average (30-day) traded volume, the stock looks set for an upside move towards 250 and above. A strict stop-loss should be kept at the 185 mark to manage risk well.
ACC Ltd.| Buy | CMP: 2,772.25 | SL: 2,700 | TARGET: 3,000
The stock has given a good breakout above its recent swing high resistance mark of 2,746.40 and successfully closed above it. With the stock witnessing a good surge in volumes along with a decisive breakout from its recent swing high resistance mark, we advise traders and investors to buy with a strict stop-loss of 2,700 for potential targets of 3,000 and above on ACC.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs