Sensex forms Double Top formation
A quick pullback rally is possible above 56,300 points, above same it could retest 56,800-57,000 level; below 56,300 it could slip till 56,000-55,900
image for illustrative purpose
Mumbai: On expiry session of September F&O series, the benchmark indices NSE Nifty closed 40 points lower, while BSE Sensex was down by 183 points. Among sectors, Pharma index was the top gainer, rallied over 1.5 per cent. Once again, IT index witnessed selling pressure at higher levels.
Technically, on the backdrop of positive global cues our market opened with a gap up, but failed to sustain above 200-day SMA (Simple Moving Average) or 57,000. On intraday time frame, the index has formed double top formation and conversely, it consistently taking support at 56,300.
"We are of the view that, as long as the index is trading above 16800/56300 the chances of quick pullback rally is bright," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Above the same, the index could retest 56,800-57,000 level. However, below 56,300 the index could slip till 56,000-55,900.
Stock Picks
APOLLOTYRE: Stock has confirmed a weakness by closing below short term moving averages and it has broke out of upside channel. Now stock can be short with SL of Rs277 for Targets of Rs268/263.
INDUSIND BANK: Stock has consolidated in the range of Rs1130-1170 since last three sessions and also has closed below 5-10 day average.
(Source: Kush Ghodasara)
