Time to go for level-based trading
After a strong pullback rally, on Wednesday one more time the benchmark indices took resistance near 61,500 level. Post muted opening it made couple of attempts to clear the 61,500 hurdle, but due to lack of follow through buying interest, registered technical selloff in the late afternoon.
image for illustrative purpose
Stock Picks
- BEML: Above Rs1,622 with a target of Rs1,638 and Stop loss of Rs1,606. The stock is in upward trending channel and has given the breakout.
- BIRLACORPN: Above Rs1,398 with a target of Rs1,412 and Stop loss of Rs1,384. It has support of 8 and 40 EMA.
- ADANITRANS: Above Rs1,851 with a target of Rs1,869 and Stop loss of Rs1,833. The stock is in upward trending channel and is on the verge of a breakout.
- FSL: Above Rs209 with a target of Rs211 and Stop loss of Rs207. It has a support of 8 EMA.
- CYIENT: Above Rs1,090 with a target of Rs1,100 and Stop loss of Rs1,080. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: After a strong pullback rally, on Wednesday one more time the benchmark indices took resistance near 61,500 level. Post muted opening it made couple of attempts to clear the 61,500 hurdle, but due to lack of follow through buying interest, registered technical selloff in the late afternoon. Among sectors, PSU Banks gain the most, rallied over two percent.
While, profit booking was seen in media and metal stocks, technically, the index has formed small bearish candle near 61,500 resistance level, but at the same time, on intraday charts it has maintained higher bottom series formation.
"We are of the view that, ahead of monthly F&O expiry, the volatility is likely to increase. Hence, level-based trading would be the ideal strategy for the day traders. For the bulls, 60,750 would be the key support level," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities. Above the same, strong possibility of quick intraday pullback rally up to 61,300-61,500 is not ruled out. On the other side, dismissal of 60,750 could possibly open another correction wave up to 60,500-60,200, he added.
