Time for level-based trading
After a sharp intraday fall on Thursday the benchmark index BSE Sensex opened with a gap of 440 points.3
image for illustrative purpose
Mumbai: After a sharp intraday fall on Thursday the benchmark index BSE Sensex opened with a gap of 440 points. Post strong opening entire day the index was trading within the range of 59,700-59,900 points.
Among sectors, strong buying was seen in auto and reality stocks. Amid auto stocks, Tata motors gain the most rallied over 11 per cent. Energy stocks witnessed technical selloff at higher levels.
Technically, Strong bearish candle followed by inside body candle formation clearly suggest indecisiveness between the bulls and the bears.
The market is consistently taking support near 20-day SMA, but at the same time witnessed profit booking near 60,000 resistance level. For the day traders, 59,500 would be the trend decider level.
Below the same, the correction wave is likely to continue up to 59,250-59,000 on the other side, 59,900 would act as a key breakout level for the bulls above the same breakout continuation formation will continue up to 60,000-60,175.
"The texture of market is range bound. Hence, level-based trading would be the ideal strategy for the traders," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
Stock Picks
♦ GODREJPROP: Above Rs4,483 with a target of Rs4,527 and Stop loss of Rs4,439. The stock is in upward trending channel and has given the breakout.
♦ ERIS: Above Rs763 with a target of Rs769 and Stop loss of Rs756. It has support of 8 and 40 EMA.
♦ ANGELBRKG: Above Rs1,362 with a target of Rs1,375 and Stop loss of Rs1,349. The stock is in upward trending channel and is on the verge of a breakout.
♦ HAVELLS: Above Rs1,393 with a target of Rs1,406 and Stop loss of Rs1,380. It has a support of 8 EMA.
♦ ESCORTS: Above Rs1,518 with a target of Rs1,533 and Stop loss of Rs1,503. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
