Sensex still holds lower top formation
Current texture of the market is non-directional. Hence, level-based trading would be ideal for short-term traders
image for illustrative purpose
Mumbai: On Wednesday, the benchmark index BSE Sensex was down by 168 points. Among sectors, Media index outperformed, rallied over 1.25 per cent, while Auto index shed over one per cent.
Technically, after a gap down opening once again the index took the support near 58,700 and bounce back sharply. However, on intraday charts, the index still holding lower top formation which is broadly negative. Currently, the market witnessing range bound activity.
"We are of the view that, on the lower side 58,700 would be the key support level, while 59,300 could act as a major hurdle for the bulls. Post 59,300 breakout the index could move up to 59,600-59,800," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side, dismissal of 58,700 could increase the selling pressure. Below 58,700 points, we could expect short-term weakness till 58,400-58,100 points.
The current texture of the market is non-directional. Hence, level-based trading would be the ideal strategy for the short-term traders.
Stock Picks
INDUSINDBANK: Stock has shown some negative divergence from RSI and MACD today. It has also closed below 5 day average today, making profit booking much possible on cards. Stock can short positionally for target of Rs1,040 and stop loss of Rs1,123
COAL INDIA: Stock has been in dream rally since the low in June and its travelling in the upside channel. Stock is showing upside momentum for targets of Rs295 and Stop Loss of Rs221
(Source-Kush Ghodasara)
