60,800pts may act as immediate support level
The benchmark indices witnessed selling pressure for third day in a row. On Thursday, the BSE Sensex opened with a gap of 300 points, but one more time bears took the aggressive stance near 61,600 resistance level. Among sectors, profit booking was seen in IT, metal and selective consumption stocks, while some intraday buying was seen in banking stocks including PSU banks.
image for illustrative purpose
Stock Picks
- CENTURYPLY: Above Rs534 with a target of Rs539 and Stop loss of Rs529. The stock is in upward trending channel and has given the breakout.
- ABB: Above Rs1,875 with a target of Rs1,893 and Stop loss of Rs1,857. It has support of 8 and 40 EMA.
- CANFINHOME: Above Rs700 with a target of Rs707 and Stop loss of Rs693. The stock is in upward trending channel and is on the verge of a breakout.
- CEATLTD: Above Rs1,350 with a target of Rs1,363 and Stop loss of Rs1,337. It has a support of 8 EMA.
- DELTACORP: Above Rs276 with a target of Rs279 and Stop loss of Rs274. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: The benchmark indices witnessed selling pressure for third day in a row. On Thursday, the BSE Sensex opened with a gap of 300 points, but one more time bears took the aggressive stance near 61,600 resistance level. Among sectors, profit booking was seen in IT, metal and selective consumption stocks, while some intraday buying was seen in banking stocks including PSU banks.
Technically, after a short-term price correction the NSE Nifty took the support near 60,500 level and reversed sharply. The index has formed bearish candle on daily charts, but at the same time it took support near important retracement level of 60,400 points. "We are of the view that, the intraday texture of the market is weak and is likely to continue in the near future. However, 60,800 would be the immediate support level for the day traders, as long as the index is trading above the same pull back rally is likely to continue up to 61,500-61,700," says Shrikant Chauhan, head of equity research(Retail), Kotak Securities.
On the flip side, dismissal of 60,800 may increase further weakness up to 60,500-60,400, he added.
