Sensex in lower top formation
Charts signalling further weakness; 57,000 is immediate support for the bulls, above which the pullback could continue till 57,500-57,750. On the flip side, below 57,000, chances of hitting 56,700-56,450 would turn bright and the selling pressure is likely to increase
image for illustrative purpose
Stock Picks
- DMART: Above Rs4,185 with a target of Rs4,250 and Stop loss of Rs4,150. The stock is in positive momentum and has been consolidating near the recent higher levels
- LTI: Above Rs6,020 with a target of Rs6,090 and Stop loss of Rs5,960. It has a support of 8 & 40 EMA
- CGCL: Above Rs600 with a target of Rs615 and Stop loss of Rs590. The stock has reversed from the support levels and is on the verge of a breakout in smaller time frame
- CHOLAFIN: Above Rs702 with a target of Rs715 and Stop loss of Rs690. It has a support of 8 & 40 EMA
- NAVINFLOUR: Above Rs3,870 with a target of Rs3,920 and Stop loss of Rs3,850. It has support of 8 and 40 EMA
(Source: Capital Via)
Mumbai: On Tuesday, due to weak global cues and uncertain geo-political issues, the benchmark indices opened with a gap down. But one more time the index took the support near 200-day SMA and registered intraday pullback rally.
From the day lowest levels, Sensex recovered over 900 points. Among sectors, almost all the major sectoral indices witnessed selling pressure but Media and Reality corrected sharply, both are down over 2.75 per cent.
Technically, although the index recovered sharply from the day lowest point, the short-term formation of the index is still in to the weak side. On daily and intraday charts, the index is holding lower top formation which indicating further weakness from current levels.
"We are of the view that, 57,000 would be the immediate support for the bulls, above which the pullback could continue till 57,500-57,750. On the flip side, below 57,000 mark, the selling pressure is likely to increase," says Shrikant Chauhan, head (equity research-retail), Kotak Securities.
Below the same the chances of hitting 56,700-56,450 would turn bright, he added. In the late afternoon session, Indian equity benchmarks pared some of their losses, but they remained in negative territory alongside weak global indices. The heavyweight Metal, FMCG, and IT sectors were the worst drags on headline indexes, with the heavyweight Metal, FMCG, and IT spaces being the worst drags on headline indices. The VIX in India was up 14.64 per cent. After a private study revealed that creation of e-Way bills for inter-state trade under the goods and services tax (GST) system stood at Rs24.27 lakh in the week, indicating an improvement in commerce, the downside was contained, analysts say.
On the global stage, all Asian and European markets were trading lower after Russian President Vladimir Putin ordered soldiers into separatist areas of eastern Ukraine, raising the possibility of a long-feared invasion.
