Mkt may consolidate in 59,700-60,700 range
After a sharp bounce back, the market witnessed narrow range activity. The BSE Sensex was down by 103 points. On Tuesday, the market opened with a positive note, but failed to clear 60,500 crucial resistance level.
image for illustrative purpose
Stock Picks
- BLUESTARCO: Above Rs1,034 with a target of Rs1,044 and Stop loss of Rs1,024. The stock is in upward trending channel and has given the breakout.
- BATAINDIA: Above Rs2,043 with a target of Rs2,063 and Stop loss of Rs2,023. It has support of 8 and 40 EMA.
- CENTURYPLY: Above Rs600 with a target of Rs606 and Stop loss of Rs594. The stock is in upward trending channel and is on the verge of a breakout.
- CANFINHOME: Above Rs610 with a target of Rs616 and Stop loss of Rs604. It has a support of 8 EMA.
- APLAPOLLO: Above Rs845 with a target of Rs853 and Stop loss of Rs837. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: After a sharp bounce back, the market witnessed narrow range activity. The BSE Sensex was down by 103 points. On Tuesday, the market opened with a positive note, but failed to clear 60,500 crucial resistance level. The entire day, the index registered selling pressure near day highest level, but despite tepid market conditions strong buying interest continued in reality, and PSU banks stocks. Technically, the intraday texture is still in to the positive side, but the key concern is, the market consistently facing resistance near 20-day SMA or 60,500. For the traders, one more time 60,500 and 60,700 would act as an important breakout level.
"We are of the view that, ahead of weekly expiry, the market is likely to consolidate in the range of 59,700 to 60,700," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
Trading setup suggest, buying on dips and sell on rallies would be the ideal strategy for the day traders. For the BSE Sensex, the intraday support has been placed at 59,850-59,700 whereas, 20-day SMA or 60,700 would act as a key resistance level. On the other side, dismissal of 59,700 could possibly trigger another correction wave till 59,450, he said.
