Mkt to remain volatile till monthly F&O expiry
The benchmark indices witnessed profit booking at higher level, the Nifty shed over 100 points whereas, and the BSE Sensex was down near 400 points. After 59,900 support breakdown the selling pressure was increased and due to profit booking at higher levels the index registered sharp price correction.
image for illustrative purpose
Stock Picks
- BEL: Above Rs212 with a target of Rs215 and Stop loss of Rs210. The stock is in upward trending channel and has given the breakout.
- CAMS: Above Rs3,459 with a target of Rs3,494 and Stop loss of Rs3,425. It has support of 8 and 40 EMA.
- CIPLA: Above Rs977 with a target of Rs987 and Stop loss of Rs967. The stock is in upward trending channel and is on the verge of a breakout.
- CROMPTON: Above Rs471 with a target of Rs476 and Stop loss of Rs467. It has a support of 8 EMA.
- DCAL: Above Rs198 with a target of Rs200 and Stop loss of Rs196. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: The benchmark indices witnessed profit booking at higher level, the Nifty shed over 100 points whereas, and the BSE Sensex was down near 400 points. After 59,900 support breakdown the selling pressure was increased and due to profit booking at higher levels the index registered sharp price correction.
However, it trimmed losses from the day lowest level of 59,046 in the last hour of trade, but close well below 59,900 support level which is broadly negative.
Among sectors, profit booking was seen in Reality, IT and selective telecom and banking stocks. While, despite weak momentum buying interest continued in Energy stocks. Technically, on daily charts the index has formed a bearish candle which indicates further weakness from current levels. However, as long as the index is trading above 20-day SMA, the uptrend texture is intact. We are of the view that, the market has completed one leg of correction and now 20-day SMA and 59,000-58,800 would act as a sacrosanct support zone.
"For the day traders, 59,900-60,100 would be the intraday resistance level. On the flip side, 59,000-58,800 would be the strong intraday support zone. The texture of the market is volatile and it will remain volatile till monthly F&O expiry. Hence, buying near strong support level would be ideal strategy for the traders," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
