Trading below 58,200 may trigger intraday correction
On Tuesday, the benchmark indices opened with a gap, but due lack of follow through buying and it trimmed all intraday gains and eventually close near to the day lowest level, which is broadly negative. Among sectors, strong buying interest was seen Media stocks, as a result Nifty Media index registered exceptional rally over 14 per cent.
image for illustrative purpose
Stock Picks
- BEL: Above Rs203 with a target of Rs205 and Stop loss of Rs201.The stock is in upward trending channel and is on the verge of a breakout.
- INDOCO: Above Rs464 with a target of Rs468 and Stop loss of Rs460. It has support of 8 and 40 EMA.
- COFORGE: Above Rs5,295 with a target of Rs5,347 and Stop loss of Rs5,245. The stock is in upward trending channel and has given a breakout.
- ISEC: Above Rs734 with a target of Rs741 and Stop loss of Rs727. It has a support of 8 EMA.
- SUVENPHAR: Above Rs537 with a target of Rs543 and Stop loss of Rs533. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: On Tuesday, the benchmark indices opened with a gap, but due lack of follow through buying and it trimmed all intraday gains and eventually close near to the day lowest level, which is broadly negative. Among sectors, strong buying interest was seen Media stocks, as a result Nifty Media index registered exceptional rally over 14 per cent.
Technically, on intraday charts, the index has formed triple top kind of formation. We are of the view that, the market is still trading within the trading range and for the bulls 58,500 would be the range breakout level.
"Above the same breakout formation likely to continue up to 58,800. On the flip side, trading below 58,200 could possibly trigger intraday correction up to 58,000-57,900," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
Another analyst said: "Our research suggests that 57,800-57,900 will be an important support zone for the market to stay positive in the short term. If the market is able to sustain the level of 57,800-57,900, we can witness higher levels of 58,500 pts. Technical indicator suggests, a volatile movement in the market in a small range between 58,200-58,500."
