73.6K to act as a trend decider level
Below the same, the market could slip till 72,500-72,200. On the flip side, above 77,2800 a minor pullback rally possible till 73,000-73,100
image for illustrative purpose
Mumbai: On Wednesday, the benchmark indices corrected sharply, the Sensex was down by 906 points. Among Sectors, all the major sectoral indices were traded in the red but Reality, Metal, Media and Energy indices, shed over 5 per cent. Technically, after dismissal of 73,600 or 20-day SMA (Simple Moving Average) support levels the selling pressure intensified. After a long time the index closed below 20 day SMA and also formed long bearish candle on daily charts which is largely negative.
“We are of the view that, the short term texture of the market turned to bearish from the bullish. Now, for the day traders, 73,600 would act as a trend decider level,” says Shrikant Chouhan, Head Equity Research, Kotak Securities. Below the same, the market could slip till 72,500-72,200. On the flip side, above 77,2800 a minor pullback rally possible till 73,000-73,100.
Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Markets erased early gains and slipped into the negative zone with frenzied selling towards the end.” There have been concerns over the rising valuations of mid & small-rung stocks for a while, and with the regulator too highlighting these concerns, traders preferred to trim their exposure which resulted in a massive correction across the board. With inflation too not showing signs of moderation and growth decelerating, investors would rather wait before taking any major longish bets.
Stock Picks
HDFC BANK
Buy | CMP: 1459.70 / SL 1440 / Target 1500
Despite a weak market sentiment, Hdfc Bank held its mark and signalled good signs of strength and momentum. With a strict stoploss of 1440, the counter looks like a good buy for potential targets of 1500 and above.
SHRIRAM PISTONS
CMP: 1424.00 / SL 1350.00 / Target 1600 and 1700
After a good correction in small and midcap stocks, Shriram Pistons is seem to be retesting its breakout level on the monthly charts. With overall trend still being positive on long term charts, the stock is looking poised for a good upmove towards 1600 and 1700 with a strict SL placed at 1350 mark.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
