Fresh uptrend possible after 57,700 breakout
57,700 would act as an immediate hurdle for the bulls, below which the correction wave is likely to continue till 57,000-56,800; on the flip side, fresh uptrend possible only after 57,700 breakout. Contra traders can take a long bet near 56,800 with 56,700 support stop loss
image for illustrative purpose
Stock Picks
- VEDL: Above Rs408 with a target of Rs422 and Stop loss of Rs398. The stock is in positive momentum and is at the support of 40 EMA.
- RAIL VIKAS NIGAM: Above Rs36 with a target of Rs38 and Stop loss of Rs35. It has a support of 8 EMA and has given a breakout in smaller time frame.
- EID PARRY: Above Rs448 with a target of Rs460 and Stop loss of Rs440. It is at the support of 8 and 40 EMA.
- NAUKRI: Above Rs4750 with a target of Rs4850 and Stop loss of Rs4690. It has reversed from the recent support zone.
- CRISIL: Above Rs3050 with a target of Rs3100 and Stop loss of Rs3000. It has reversed from the support of 8 EMA.
(Source: Capital Via)
Mumbai: After a strong uptrend rally, the benchmark indices witnessed profit booking. NSE Nifty ends 169 points lower, while BSE Sensex was down by 571 points. Among Sectors, profit booking was seen in FMCG and infra stocks whereas despite weak market conditions buying interest continued in Metal stocks as a result, the Metal index rallied over 1.5 per cent.
Technically, the market took the resistance near 50-day SMA and reversed sharply. It also formed bearish candle on daily charts which supports further weakness. However, the medium-term texture of the market is still in to the positive side.
"We are of the view that, 50-day SMA or 57,700 would act as an immediate hurdle for the bulls. Below which the correction wave is likely to continue till 57,000-56,800," says Amol Athawale, deputy vice-president (technical research), Kotak Securities.
On the flip side, fresh uptrend possible only after 57,700 breakout. Above which the chances of hitting 58,000-58,200 would turn bright. Contra traders can take a long bet near 56,800 with 56,700 support stop loss, an analyst said.
After no evidence of positive advances between Russia and Ukraine, local financial markets deepened their losses in the late afternoon session, raising concerns about global oil supply. Concerns about the increased number of Covid-19 cases in China were likewise low. Traders were concerned after reports that customers may have to pay more for everyday necessities, with FMCG businesses considering another price hike to offset the impact of historic levels of inflation in commodity costs such as wheat, palm oil, and packaging materials. On the global front, Asian markets were mainly in the green following last week's advance, while oil prices continued to rise, with investors keeping an eye on the Ukraine conflict after Turkey claimed Kyiv and Moscow were close to agreeing on a ceasefire. The rise in European markets was aided by increases in energy stocks.
