Nifty closes below 200DMA, forms long bearish candle
55,000 and 55,250 would act as intraday resistance for the Sensex, while 54,100-53,800 could be the immediate support zone for the index
image for illustrative purpose
![Markets open on a negative note Markets open on a negative note](https://www.bizzbuzz.news/h-upload/2021/12/13/1428104-sensex.webp)
Stock Picks
- HINDALCO: Above Rs528 with a target of Rs538 and Stop loss of Rs520. The stock is in positive momentum and is at the support of 40 EMA
- CGCL: Above Rs600 with a target of Rs610 and Stop loss of Rs590. It has a support of 8 & 40 EMA
- AAVAS: Above Rs3000 with a target of Rs3050 and Stop loss of Rs2970. It is at the support of 40 EMA
- SUNTECK TEALTY: Above Rs344 with a target of Rs355 and Stop loss of Rs338. It has reversed from the recent support zone
- FINEORGANIC: Above Rs3960 with a target of Rs4020 and Stop loss of Rs3900. It has support of 8 and 40 EMA
(Source: Capital Via)
Mumbai: On Thursday, the last day of February F& O expiry, the benchmark indices registered sharp selloff. The BSE Sensex was down by 2,700points. Weak global cues, geopolitical tension and rising crude oil prices were the major factors behind sharp selloff. On Thursday, the nifty opened well below 200-day SMA and post gap down opening it intensified the weak momentum throughout the day.
Among Sectors, all the major sectoral indices corrected sharply but PSU Banks and Reality lost the most, both the indices down over 6 percent. Technically, after a long time, Nifty closed below 200-day SMA and it has formed a long bearish candle on daily charts which suggest further weakness from current levels.
Considering the uncertainties hovering around, the index may trade lower between the highs of 54,400 and 56,200. The market is in corrective mode and it would complete its corrective pattern between 54,400 and 53,800.
"For the traders, 55,000 and 55,250 would act as intraday resistance for BSE Sensex, while 54,100-53,800 could be the immediate support zone for the index," says Shrikant Chauhan, head (equity research-retail), Kotak Securities.
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