Quick intraday relief rally likely

Stock Picks

- LAURUSLABS: Above Rs660 with a target of Rs680 and Stop loss of Rs650. The stock is trading above resistance and is showing an upward movement.

- BALRAMCHI: Above Rs510 with a target of Rs535 and Stop loss of Rs498. The closing is above both 20 and 80 EMA.

- SBI: Above Rs514 target of Rs535 and Stop loss of Rs500. The stock closed at above the 50-day moving average.

(Source: Capital-Via)

Mumbai: The domestic stock market witnessed selling pressure for the third day in a row. BSE Sensex was down by 575 points. Among sectors, almost all the major sectoral indices were traded in the red but Energy and Metal indices lost the most whereas some buying interest was seen in selective pharma stocks.

Technically, on intraday charts the index is still holding lower high series formation and it also formed bearish candle on daily charts which is largely negative. However, in last three days the index corrected over 1700 points and after a short-term correction currently it is trading near important retracement support level. "We are of the view that, the market has completed one leg of correction. Hence, strong possibility of quick intraday relief rally is not ruled out, if the index succeed to trade above 59,200," says Shrikant Chouhan, head (equity research-retail), Kotak Securities. Above which it will move up to 59,500-59,700. On the other side, 58,900 would act as crucial support zone for the traders, below the same the index could retest the level of 58,600-58,400.

"Markets fell for third day in a row now with benchmark index down almost 1 per cent. The fall was on account of expected fed rate hike in next meeting. In coming days, we expect some correction in market bound by results of Q4. The market was also volatile on account of expiry. Investors are advised to use any fall to add fundamental stocks in their portfolio, as the market looks positive in coming days," said Rahul Sharma, co-founder Equity 99.