Short-term texture still non-directional
On Tuesday, the benchmark index BSE Sensex was down by 208 points
image for illustrative purpose
Mumbai: On Tuesday, the benchmark index BSE Sensex was down by 208 points. Among sectors, IT index corrected sharply, down 1.5 per cent whereas despite tepid market conditions PSU banks index outperformed, rallied over 1.20 per cent. Technically, after a gap down opening the entire day the market hovered between 62,400-62,650 range.
"Currently, the market is trading near 10-day SMA and the range-bound activity near 10-day SMA (Simple Moving Average) indicating strong possibility of trend reversal in the near future," says Shrikant chouhan, head of Equity Research (Retail), Kotak Securities.
For the bulls now, 62,800 would be the key level to watch out, above the same we could see a fresh uptrend rally till 63,100-63,300. On the flip side, a fresh round of selling pressure is possible only after dismissal of 62,400 below which the index could slip till 62,100-61,900.
Stock Picks
SBIN: The stock has been consolidating near the range of 10-15-day average, but accumulation has been witnessed in volumes. We have even witnessed writing at 600 Put option which is suggesting strong support. Therefore we shall recommend a buy with target of Rs 629 and SL: Rs598.
Indigo: Stock has been consolidating in the a narrow wedge pattern which has given a bullish crossover at RSI and MACD indicators. Stock had witnessed volumes today and it is anticipated to have a breakout from the symmetric triangle. We shall go long for targets of Rs 2040 with SL:Rs1910
