Go for level-based trading
The benchmark indices corrected sharply, as the BSE Sensex was down by 554 points. Among sectors, all the major sectoral indices registered technical selloff, but Reality lost the most, shed over 2.5 per cent.
image for illustrative purpose
Stock Picks
- Prestige Estate: At Rs525 levels, looking strong for upside momentum, after gap-up opening the stock is available at very attractive prices for positional and short term trade. Targeting Rs550 with SL – Rs514
- Oberoi Realty: After huge decline today, stock is again available at attractive prices to hold for short term target Rs1,050 & SL – Rs910
- Medplus: After sharp decline the stock has taken great support at its 20DEMA on Intraday charts, looks attractive to make position for short term target – Rs1,220 & SL – Rs1,160
- CMS INFO: Recently listed stock which was in great momentum is now available at attractive price, good time to add on dips, Keep SL – Rs285 & TGT – Rs320
- AXIS BANK: Above Rs725, After sharp cut, the stock was able to hold 100 DEMA, keep a SL – Rs716 for a TGT of Rs747
(Source_Equity 99)
Mumbai: The benchmark indices corrected sharply, as the BSE Sensex was down by 554 points. Among sectors, all the major sectoral indices registered technical selloff, but Reality lost the most, shed over 2.5 per cent. Technically, on daily charts the Sensex has formed long bearish candle which suggest further weakness from current levels. In addition, on intraday charts, it has formed lower top formation that also recommends continuation of weakness in the near future. However, after a sharp intraday correction, currently the index is trading near important support level.
"We are of the view that, the intraday formation is still in to the weak side and now 61,000-61,200 would act as important hurdle for the day traders, below the same the correction wave will continue up to 60,500-60,400," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
Contra traders can take long bet near 60,400 with strict 60,225 support stop loss. The market is volatile and remain volatile in the near future hence level-based trading would be the ideal strategy for the day traders, he added. Market corrected today by almost 1 per cent. The correction might continue for some time now with minor profit booking seen with budget nearing.
"Investors should take advantage of this fall to add quality counters on major dips," Rahul Sharma, co-owner, Equity 99 said.
