Further weakness likely
Long bearish candle on daily charts and Double Top formation on intraday charts are indicating some pressure
image for illustrative purpose
Mumbai: On Wednesday, the benchmark indices witnessed a sharp intraday correction as BSE Sensex was down by 636 points. Among sectors, all the major sectoral indices were traded in red, but Metal and Reality indices lost the most, shed over two per cent each.
Technically, after early morning selloff, the index held the weak momentum throughout the day. Long bearish candle on daily charts and Double Top formation on intraday charts are indicating further weakness from the current levels.
"For the traders now, as long as the index is trading below 61,200 level the correction wave is likely to continue below the same market could slip till 60,400-60,200," says Shrikant Chauhan of Kotak Securities.
On the flip side, fresh uptrend rally possible only after 61,200 above the same, the index could move up to 61,500-61,600.
Stock Picks
AXISBANK: The stock has taken strong resistance at Rs980 level where we are witnessing highest CE writing on option side. Indicators have turned weak today with a negative closing. Stock future can be short for target price of Rs910 and stop loss at Rs989.
APOLLOTYRE: The stock price has given some negative divergence with RSI and MACD.Today stock future also managed to close below all short term moving averages making momentum weak. Stock future can be short positionally with a stop loss of Rs329 and target at Rs308.
(Source_ Kush Ghodasara)
