Be ready for intraday correction
Today, again the market has managed to establish a new record high of 51,835, but due to profit booking it corrected sharply in the last hour of trade.
image for illustrative purpose
Stock Picks
l BAJAJHLDING - Above 3570 with a target of 3630 and Stop loss of 3540. It has reversed from the support of upward trending line.
l APLAPOLLO - Above 975 with a target of 995 and Stop loss of 960. It is an upward trending channel and on the verge of a breakout.
l NBCC - Above 34.30 with a target of 37 and Stop loss of 32. It is an upward trending channel and on the verge of a breakout.
l ACC - Above 1784 with a target of 1810 and Stop loss of 1760. It has a support of 8 and 40 DMA.
l NLCINDIA - Above 58.50 with a target of 62 and Stop loss of 56. It has reversed from the support of 8 and 40 EMA
(Source-CapitalVia)
Mumbai: Today, again the market has managed to establish a new record high of 51,835, but due to profit booking it corrected sharply in the last hour of trade. Among sectors, profit booking was seen in Media, Auto and Pharma stocks whereas, witnessed buying in insurance, paints stocks. "We are of the view that the market is overstretch and last hour selling pressure indicating strong possibility of quick intraday correction from current levels," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
Technically, the index has formed Hammer kind of candlestick pattern which clearly indicates indecisiveness between bulls and bears.
For the next few trading session 51,800 would be the key resistance level, trading below the same we can expect intraday, correction up to 51,000-50,500. On the flip side, if index succeeded to trade above 51,800 then uptrend continuation rally likely to continue till 52,200-52,500.
