Pullback rally possible above 53,300 level
For the bulls, a pullback rally possible only after 53,300 above which the index could rally up to 53,800-54,200; on the flip side, 52,300 would be the immediate support zone, below the same, the chances of hitting 52,000 and 51,900 would turn bright
image for illustrative purpose
![Quick intraday relief rally likely Quick intraday relief rally likely](https://www.bizzbuzz.news/h-upload/2022/03/03/1490262-sensex.webp)
For the bulls, a pullback rally possible only after 53,300 above which the index could rally up to 53,800-54,200; on the flip side, 52,300 would be the immediate support zone, below the same, the chances of hitting 52,000 and 51,900 would turn bright
Investors are advised to retain liquidity and avoid taking new position in market till things are clear
Stock Picks:
- HINDALCO: Above Rs623 with a target of Rs635 and Stop loss of Rs615. The stock is in positive momentum and is at the support of 40 EMA.
- LEMON TREE HOTELS: Above Rs55.50 with a target of Rs59 and Stop loss of Rs53. It has a support of 8 & 40 EMA and has given a breakout in smaller time frame.
- BALRAMPURCHINI: Above Rs460 with a target of Rs475 and Stop loss of Rs450. It is at the support of 40 EMA.
- GRINDWELL NORTON: Above Rs1700 with a target of Rs1780 and Stop loss of Rs1650. It has reversed from the recent support zone.
- HEG: Above Rs1315 with a target of Rs1350 and Stop loss of Rs1290. It has reversed from the support of 8 EMA.
(Source: Capital-Via)
Mumbai: On Monday, the benchmark indices registered a sharp sell-off, the BSE Sensex was down by 1,491 points. Due to a sharp surge in oil prices and extremely weak global market conditions the Sensex opened below 53,300 mark. Post gap-down opening, entire day the index hovered within the range of 52,360-53,200. Among sectors, banking, financial and reality stocks lost the most while one more time, metal stocks outperformed. As a result, Metal index rallied over 2 percent. Technically, after a meaningful price correction, the index has formed Hammer candle stick formation which is broadly positive. In addition, the momentum indicators also indicating strong possibility of one quick pull back rally, it the BSE Sensex succeed to trade above 53,300.
"We are of the view that, the larger texture of the market is still in to the weak side, but due to temporary oversold situation a quick pullback rally is not ruled out. For the bulls, a pullback rally possible only after 53,300 above which the index could rally up to 53,800-54,200," says Shrikant Chauhan, head (equity research-retail), Kotak Securities.
On the flip side, 52,300 would be the immediate support zone, below the same, the chances of hitting 52,000 and 51,900 would turn bright, he added. "Markets continue to show weakness with Sensex down approx 2.5 per cent today. The uncertainty continues due to current crisis between Russia and Ukraine along with increasing crude oil rates. Investors are advised to retain liquidity and avoid taking new position in market till things are clear," said Rahul Sharma, Equity 99.