Selling intensity decreasing
Market volatility possible between 56.5K and 55K. A close below 55,000 will be negative for the market; The market is going to face many uncertain events in the near future and based on that we have to keep in mind that the upside is limited but the downside is still open
image for illustrative purpose
Stock Picks
- BEL: Above Rs220 with a target of Rs230 and Stop loss of Rs215. The stock is in positive momentum and is at the support of 40 EMA.
- TRENT: Above Rs1140 with a target of Rs1175 and Stop loss of Rs1120. It has a support of 8 and 40 EMA and has given a breakout in smaller time frame.
- WIPR: Above Rs576 with a target of Rs588 and Stop loss of Rs570. It is at the support of 40 EMA.
- HINDUSTAN PETRO: Above Rs284 with a target of Rs295 and Stop loss of Rs275. It has reversed from the recent support zone.
- LTI: Above Rs6075 with a target of Rs6100 and Stop loss of Rs6000. It has reversed from the support of 8 EMA.
(Source: Capital Via)
Mumbai: The market closed in negative territory on the weekly closing day. However, the selling intensity is decreasing over the past few days and 55,000/54,800 is again emerging as key support for the market.
"In the last downtrend, the market found strong support at 55,000 which bounced the market back to 61,500. In short, the 55,000 level has great relevance and as long as the market stays above it, we can see a market volatility between 56,500 and 55,000," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
A close below 55,000 will be negative for the market. The market is going to face many uncertain events in the near future and based on that we have to keep in mind that the upside is limited, but the downside is still open, he added.
In the late afternoon session, Indian equities markets lost additional ground as investors maintained an eye on developments relating to the ongoing conflict between Ukraine and Russia. The major indices were trading in a range. Export cargoes to CIS (Commonwealth of Independent States) countries are impacted due to the continuing war between Russia and Ukraine, according to the Federation of Indian Export Organisations (FIEO), and no shipping line is ready to handle consignments there, analysts say. On the global front, Asian markets were mainly in the green after the Federal Reserve chairman stated he supported a lesser rate hike than some had predicted.
