Weak short-term formation may continue
In the last week, the Benchmark indices witnessed selling pressure, the BSE Sensex ends nearly two per cent lower. The week opening was positive, but due to tepid global cues, and lack of follow-through buying interest, the market corrected sharply.
Sensex forms long bullish candle
Stock Picks
- SCI: Above Rs141 with a target of Rs143 and Stop loss of Rs139. The stock is in upward trending channel and has given the breakout.
- AARTIIND: Above Rs973 with a target of Rs982 and Stop loss of Rs964. It has support of 8 and 40 EMA.
- ATGL: Above Rs1,650 with a target of Rs1,666 and Stop loss of Rs1,634. The stock is in upward trending channel and is on the verge of a breakout.
- DMART: Above Rs5,063 with a target of Rs5,113 and Stop loss of Rs5,013. It has a support of 8 EMA.
- ABFRL: Above Rs284 with a target of Rs287 and Stop loss of Rs281. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: In the last week, the Benchmark indices witnessed selling pressure, the BSE Sensex ends nearly two per cent lower. The week opening was positive, but due to tepid global cues, and lack of follow-through buying interest, the market corrected sharply. Among sectors, Nifty Metal, Commodity and PSU Banks indices registered selling pressure at higher level while some buying interest was seen in selective Auto stocks. Meanwhile, after a long time, the bank nifty trading below 50-day SMA which is broadly negative.
The texture suggests now, 38,500 and 39,000 could act as an important resistance level in the short run. Technically, on weekly charts, the Sensex has formed strong bearish candle which is largely negative. In addition, on daily charts, the index has broken the important support level of 59,800 and succeed to close below the same.
"We are of the view that, the short-term formation is weak and is likely to continue in the near future. For the traders, now 60,200 would be the immediate hurdle above the same, pull back momentum will continue up to 60,500-60,800-61000," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
On the flip side, trading below 50-day SMA or 60,000 the index could slip up to 59,000-58,800. Contra traders can take long bet near 58,800 with strict 58,550 support stop loss, he added.