Buy on dips, keep stop loss at 48k

Mumbai The market had broken all important supports in the morning, however, in the second half of the session, the market recovered smartly and erased all the losses of the first session.

Except for the metal index, we saw stock-specific activity in the market. The market got the support of laggards of last few weeks, for example Bharti Airtel, SBI LIFE, ASIAN PAINTS, and Adani Ports. To recover from the lower levels, the Bank-Nifty offered significant support to the market heavily.

"On Tuesday, 48,500 and 48,250 would be major supports for the market," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.

On the higher side, 48,870 and 49,100 would be major hurdles. The ideal strategy should be to buy on dips and keep a final stop loss at 48,000 for trading long in the market.

The Bank-Nifty has formed the bullish hammer formation and we would see the levels of 33,000 or 33,300 in the near term. The level of 31,800 on the bank nifty would be a trend decider

Stock Picks

JSWENERGY - Above 114 with a target of 117 and Stop loss of 111. It is trading in a Strong uptrend and is on the verge of a breakout.

BAJFINANCE - Above 5580 with a target of 5670 and Stop loss of 5510. It has a support of 8 and 40 EMA.

ADANIENT - Above 1265 with a target of 1305 and Stop loss of 1225. The stock is in upward trending channel and is on the verge of a breakout.

KRBL - Above 211 with a target of 216 and Stop loss of 208. It has a support of 8 and 40 EMA.

AARTIIND - Above 1655 with a target of 1695 and Stop loss of 1615. It has reversed from the support of 8 EMA

(Source-CapitalVia)