Trade with strict stop losses

Stock Picks

- POLYPLEX: Above Rs2160 with a target of Rs2190 and Stop loss of Rs2140. The stock is in positive momentum and is at the support of 40 EMA.

- CENTURY TEXTILE: Above Rs815 with a target of Rs835 and Stop loss of Rs795. It has a support of 8 EMA and has given a breakout in smaller time frame.

- HAL: Above Rs1482 with a target of Rs1520 and Stop loss of Rs1460. It is at the support of 8 and 40 EMA.

- METROPOLIS HEALTHCARE: Above Rs2000 with a target of Rs2040 and Stop loss of Rs1980. It has reversed from the recent support zone.

- MCX: Above Rs1430 with a target of Rs1455 and Stop loss of Rs1400. It has reversed from the support of 8 EMA.

(Source: Capital Via)

Current texture is likely to continue unless Sensex slips below 56,200-56,100. Above which, we could see the level of 57,200-57,500; on the flip side, traders may prefer to take caution, if the nifty slips below 56,200. Below the same, chances of hitting 56,100-55,800 would turn bright

Mumbai: On Wednesday, the benchmark index BSE Sensex was up by 1039 points. After a Tuesday's sharp intraday price correction, the index on Wednesday opened with a gap and reclaimed the level of 56,700. Post gap-up opening entire day it was hovered between 56,400-56,700, but in the last hour of trade it successfully clears the intraday resistance of 56,700 and succeeds to close above the same which is broadly positive. Among sectors, almost all the major sectoral indices traded in the green but Reality index outperformed, rallied over three per cent.

Technically, on intraday charts the index maintains higher high and higher low formation and now, heading towards 57,000 and 57,500.

"We are of the view that the current texture is likely to continue unless Sensex slips below 56,200-56,100. Above which, we could see the level of 57,200-57,500," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities. On the flip side, traders may prefer to take caution, if the Nifty slips below 56,200. Below the same, chances of hitting 56,100-55,800 would turn bright, he added.

"After yesterday`s fall markets today made a good comeback with Sensex gaining almost 1.86 per cent due to falling crude oil price. Tomorrow we will witness a volatile session due to weakly expiry and also Fed`s meeting today where likely rate hike is expected after Covid-19," says Rahul Sharma of Equity 99.

Also, brutal FII`s selling is a factor to consider before taking any positions. Tomorrow considering the volatility traders are advised to trade only after keeping strict stop losses.

Indian market held onto its gains in the late afternoon session as investors awaited the outcome of the Federal Reserve policy meeting. In the face of rising prices, investors expect the US central bank to hike interest rates for the first time in three years, by at least 25 basis points, an analyst said.

Traders disregarded a remark from the finance ministry that the current jump in crude oil prices, if continued long into FY23, may offer a downside risk to growth forecasts from several agencies, which have forecast GDP growth of 8-10 percent in the coming year. All Asian markets were trading higher on the global front. European stock indexes were up as investors awaited the Federal Reserve's interest rate announcement in the United States.