Charts indicate indecisiveness among bulls, bears
Sensex forms small inside body bearish candle; 58,875 will act as a key support level, above which possible pullback rally till 59,650-59,800
image for illustrative purpose
Stock Picks
- TCS: Above Rs3700 with a target of Rs3800 and Stop loss of Rs3661. The stock is making consolidation in 15min time frame.
- DAAWAT: Above Rs85 with a target of Rs100 and Stop loss of Rs75. The stock has showed a trend line break and a volume.
- BALRAMCHIN: Above Rs516 target of Rs535 and Stop loss of Rs500. The stock closed at above the 50 day moving average.
(Source: Capital-Via)
Mumbai: On Monday, the benchmark indices witnessed lacklustre activity, BSE Sensex was down by 482 points. After promising last Friday pullback rally, the market opened with a negative note and post weak opening throughout the day it was hovered within the range of 58,900-59,355. Among sectors, some buying was seen in Media and Energy stocks whereas IT index lost the most, shed over one percent.
Technically, on daily charts, the index has formed small inside body bearish candle which indicating indecisiveness between bulls and bears.
"We are of the view that, 10-day SMA and 58,875 retracement support zone would act as a key supports level for the Sensex. Trading above the same strong possibility of one more pullback rally till 59,650-59,800 is not ruled out," says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
On the flip side, below 58,875 range breakout, the market could retest the level of 58,600-58,400, he added.
