59,550 pts to act as key support level
The benchmark indices witnessed profit booking near 60,400 points, as a result the BSE Sensex shed over 257 points.
image for illustrative purpose
Stock Picks
- KPRMILL: Above Rs496 with a target of Rs500 and Stop loss of Rs492. The stock is in upward trending channel and has given the breakout.
- HINDPETRO: Above Rs315 with a target of Rs318 and Stop loss of Rs312. It has support of 8 and 40 EMA.
- DELTACORP: Above Rs275 with a target of Rs277 and Stop loss of Rs273. The stock is in upward trending channel and is on the verge of a breakout.
- FINCABLES: Above Rs489 with a target of Rs493 and Stop loss of Rs485. It has a support of 8 EMA.
- TATAELXSI: Above Rs6,190 with a target of Rs6,251 and Stop loss of Rs6,129. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: The benchmark indices witnessed profit booking near 60,400 points, as a result the BSE Sensex shed over 257 points. After gap up opening, one more time, the Sensex took resistance near 60,400 and corrected sharply. Among sectors, profit booing was seen in banking, media and selective auto stocks. Despite weak market sentiment, the reality stocks outperformed. As a result, the Nifty Reality index gained rallied over two percent.
Technically, the index consistently trading below 20-day SMA and on intraday charts, it also formed lower top formation near 60,400 which is broadly negative for the market.
However, as long as it's trading above 59,550 the uptrend texture is intact."We are of the view that, 59,550 would act as key support level for the day traders, above the same we can expect one more intraday up move up to 60,000-60,300," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
On the flip side, trading below 59,550 could possibly trigger one more correction wave till 59,300-59,100, he added. Analysts also feel that 59,000 will be an important support zone for the market to stay positive in the short term. Market will face resistance around the level of 60,400, a significant breakout above the levels of 60,400 could result in improvement of market breadth and market can rally till the levels of 60,600. Technical indicator suggests, a volatile movement in the market in a small range.
