48,250 is support area for positional traders
image for illustrative purpose
Mumbai The narrow range activity continues but index recovered sharply from 48250 support level. Today's intraday activity has been lackluster with a momentum of near 500 points.
Among sectors, strong buying was seen in Pharma, Bank Nifty index while minor profit booking was seen in selective Reality and financial stocks. Technically, post yesterday's sharp fall, today's market is trading within the yesterday range which clearly indicates indecisiveness between bulls and bears.
The Sensex has formed inside the body candle formation near the 20 day SMA and index once again managed to close above the 20 day SMA level, which is broadly positive for the market. "We are of the view that, in the short run 48,250 should be the sacrosanct support area for the positional traders, above the same we can expect continuation of uptrend up to 49,200 further upside may also continue which could lift the index up to 49,850.," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
On the flip side, trading below 48,250 could possibly open one more correction wave up to 48,000-47,750, he added
Stock Picks
- AUROPHARMA - Above 1025 with a target of 1050 and Stop loss of 1000. It is trading in a Strong uptrend and is on the verge of a breakout.
- ADANIENT - Above 1300 with a target of 1350 and Stop loss of 1250. It has a support of 8 and 40 EMA.
- LAURUSLABS - Above 500 with a target of 515 and Stop loss of 488. The stock is in upward trending channel and is on the verge of a breakout.
- CADILAHC - Above 608 with a target of 624 and Stop loss of 595. It has a support of 8 and 40 EMA.
- APOLLOHOS - Above 3360 with a target of 3730 and Stop loss of 3300. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
