Non-directional activity likely
Market may remain volatile in the near future. For day traders, buying near 57,700 and 57,500 support level and sell on rallies would be the ideal strategy, whereas 58,550-58,750 would be a hurdle; Rally will be led by Small and Midcaps, it is required to trade with strict stop loss
image for illustrative purpose
Stock Picks
- BANDHANBANK: Above Rs332 with a target of Rs345 and Stop loss of Rs320. The stock is in consolidating near the high and has reversed from the support of 8 and 40 EMA.
- VBL: Above Rs941 with a target of Rs955 and Stop loss of Rs930. It has support of 8 and 40 EMA.
- INDIAMART: Above Rs5,250 with a target of Rs5,350 and Stop loss of Rs5,200. The stock has reversed from the support levels and is on the verge of a breakout in smaller time frame.
- CGCL: Above Rs600 with a target of Rs610 and Stop loss of Rs595. It has a support of 8 & 40 EMA.
- DIVI's LAB: Above Rs4,500 with a target of Rs4,575 and Stop loss of Rs4,450. It has support of 8 and 40 EMA.
(Source: Capital Via)
Mumbai: On Wednesday, the benchmark indices witnessed roller coaster trading session. After a 789 points momentum, BSE Sensex down by 145 points. Among sectors, Reality index gained over one percent, while some profit booking was seen in PSU banks and metal stocks. Technically, the Sensex failed to sustain above 50-day SMA which is broadly negative. The intraday texture of the market is volatile and may remain volatile in the near future.
"We are of the view that, the market is likely to continue non-directional activity in the near future. For the bulls 57,700 and 57,500 would be the key support zones whereas 58,550-58,750 would act as an important hurdle for the traders," says Shrikant Chauhan, head (equity research-retail), Kotak Securities. For day traders, buying near support level and sell on rallies would be the ideal strategy.
The volatility in markets continues post the buying in markets witnessed on Tuesday. However, we see some strength in Smallcap and Midcap stocks.
"We are of the view that next stage of rally in the market will be led by Small and Midcaps. However, considering the current volatility, it is required to trade with strict stop loss," says Rahul Sharma, CEO, Equity 99.
