Go for select buying with a mid-term view
Unusual strength in the dollar index and sustained run up in the commodities have battered the sentiment of the equity market
image for illustrative purpose
Mumbai: Unusual strength in the dollar index and sustained run up in the commodities have battered the sentiment of the equity market.
Sensex fell more than one per cent during the day and made a low of 48,460. It has triggered selling in commodities. Reliance Industries and HDFC Bank have supported the market otherwise it could have closed below the levels of 48,400.
On a daily chart, Sensex has formed bearish continuation formation following to a Doji star of formation on a weekly chart. As the market closed below the crucial support 48,800, Sensex could fall to 48,100 or 47,900 in next couple of days. On the higher side, 48,800 and 49,150 would be major hurdles.
"The strategy should be to trade on bounces and keep a final stop loss at 49,200 levels is advisable between 48,100 and 47,900 levels, strictly with a medium-term view," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
Stock Picks
♦ BPCL_Above 406 with a target of 416 and Stop loss of 399. It has formed a cup and handle formation.
♦ GLENMARK_Above 526 with a target of 534 and Stop loss of 520. It has a support of 21 and 40 DMA.
♦ APOLLOTYRE_Above 196 with a target of 202 and Stop loss of 191. It has a support of 8 and 40 DMA.
♦ SBILIFE _Above 955 with a target of 970 and Stop loss of 940. It is trading in an upward trending channel.
♦ BALRAMCHIN_Above 178.50 with a target of 183 and Stop loss of 175. It has formed a support of 55 DMA and has reversed from the same.
(Source-CapitalVia)
