Texture of market is volatile
The benchmark indices witnessed profit booking at a higher level, the NSE Nifty shed over 175 points whereas, and the BSE Sensex was down by 555 points.
image for illustrative purpose
Mumbai: The benchmark indices witnessed profit booking at a higher level, the NSE Nifty shed over 175 points whereas, and the BSE Sensex was down by 555 points. After 59,700 support breakdown the selling pressure was increased and due to profit booking at higher levels, the index registered a sharp price correction. Among sectors, most of the major indices traded in the red but serious profit booking was seen in Metal, PSU banks and pharma stocks. As a result, the Nifty Metal index shed over 3 per cent.
Technically, on daily charts, the index has formed a long bearish candle, which indicates further weakness from current levels. However, as long as the index is trading above 20 days SMA, the uptrend texture is intact. We are of the view that the market has completed one leg of correction and now 20 days SMA and 59,000 would act as a sacrosanct support zone.
"For the day traders, 59,500-59,800 would be the intraday resistance level. On the flip side, 59,000-58,700 would be the key support area. The texture of the market is volatile hence quick intraday correction from the resistance levels is not ruled out," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
Stock Picks
n IRCTC: Above Rs4,482 with a target of Rs4,526 and Stop loss of Rs4,438. The stock is in upward trending channel and has given the breakout.
n JUSTDIAL: Above Rs1,009 with a target of Rs1,019 and Stop loss of Rs999. It has support of 8 and 40 EMA.
n GRINDWELL: Above Rs1,466 with a target of Rs1,480 and Stop loss of Rs1,452. The stock is in upward trending channel and is on the verge of a breakout.
n CRISIL: Above Rs2,875 with a target of Rs2,903 and Stop loss of Rs2,847. It has a support of 8 EMA.
(Source-CapitalVia)
