Sideways movement may continue
In the late afternoon session, local equities indices pared some of their losses, although they remained below the neutral levels.
image for illustrative purpose
Mumbai: In the late afternoon session, local equities indices pared some of their losses, although they remained below the neutral levels. Traders were cautious as Oxford Economics, a worldwide forecasting agency, stated that a rise in retail inflation in May could prompt the RBI to reconsider its focus on growth concerns, but that a rate hike this year is still improbable.
Sensex continues to trade in a tight range between 52,400-52,800 points. In the first half bears tried to take the control with the opening of the market, but in the second half bulls take control of the market and trim some losses. Given the fact that most of the oscillators are trading at its extreme we believe a sideways movement is likely to continue till it breaches the resistance of 52,900 points, CapitalVia said.
The market remained in a narrow trading range with a negative bias ahead of the Fed's meeting in the US. Today, we also saw a big drag on the metal index due to specific announcement from China on the increase of supply in commodities. After the outcome from the Fed, we need an opening of the market above the levels of 52,750, which would push the market towards 53,300 levels.
"In case the market opens lower and breaks the level of 15,580/51,850, then the chances of hitting 51,600/51,400 would turn bright. As the major trend of the market is positive, our advice is to add long positions, if the market fell to major supports in the short term," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities
Stock Picks
- AARTIIND_Above Rs1850 with a target of Rs 1890 and Stop loss of Rs 1815. It is trading in a Strong uptrend and is on the verge of a breakout.
- GSFC_Above Rs125 with a target of Rs136 and Stop loss of Rs114. It has support of 8 and 40 EMA.
- DABUR_Above Rs583 with a target of Rs592 and Stop loss of Rs575. The stock is in upward trending channel and is on the verge of a breakout.
- BRITANNIA_Above Rs3,645 with a target of Rs3,695 and Stop loss of Rs3,600. It has a support of 8 EMA.
- BAJAJHLDNG_Above Rs3,600 with a target of Rs3,660 and Stop loss of Rs3,550. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
