Go for buying if Sensex falls to 49,200 level
- DLF - Above 311 with a target of 327 and Stop loss of 295. It is an upward trending channel and prices bounced from the support of the trendline.
- ICICIGI - Above 1515 with a target of 1571 and Stop loss of 1459. It has support of 8 & 40 EMA and prices reversed from the support level.
- GRASIM - Above 1250 with a target of 1280 and Stop loss of 1220. We expect the stock to give consolidation breakout.
- GODREJPROP - Above 1506 with a target of 1565 and Stop loss of 1447. It is an upward trending channel and prices bounced from the support of the trendline.
- BRIGADE - Above 295 with a target of 309 and Stop loss of 281. It is an upward trending channel and on the verge of a breakout.
Mumbai: Markets logged small gains after a sharp decline in last five sessions. Most of the time such type of formation works as a continuation and on Wednesday, if the market breaks the 49,600 level, the Sensex could fall further on the support of 49,300 levels. However, a 50 per cent retracement shown by the Sensex after the announcement of the Union Budget could be a reversal for the market.
"In short, there should be a buying strategy if the Sensex falls to the 49,200 levels, however, if the Sensex closes below the 49,200 level, it would indicate further weakness," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
On the upside, 50,350 and 50,750 levels would be the major obstacles. While the metals sector performed well to date, bank stocks failed to perform due to exceptional strength in long-term bond yields.