Mkt remains under selling pressure
If BSE Sensex breaks and closes below the 52,500, it will be a major downside event for the mkt and fall to the level of 52,000-51,700 in the short term
image for illustrative purpose
Stock Picks
- MARICO: BUY, CMP Rs 500.1, TARGET Rs 525, SL Rs 490. The formation of a bullish engulfing candlestick pattern at the important support levels suggests for reversal and fresh upward movement in the near term.
- SIEMENS: BUY, CMP Rs 2381.65, TARGET Rs 2500, SL Rs 2330. The stock is seen coming out of the consolidation phase with a range breakout, and hence the formation indicates a further uptrend from the current levels in the coming trading sessions.
- BHARTIARTL: BUY, CMP Rs 671.3, TARGET Rs 705, SL Rs 655.
The stock witnessed price correction from the higher levels and eventually, it has entered into its demand zone. Hence, the formation suggests trend reversal from current levels.
- MARUTI: BUY, CMP Rs 7901.6, TARGET Rs 8300, SL Rs 7740.
The counter is trading in a triangle chart formation and a breakout from the pattern is very likely in the coming session for further upward movement.
The counter is trading in an ascending triangle chart formation and a breakout from the pattern is very likely in the coming session for further upward movement.
- SBILIFE: BUY, CMP Rs 1133.7, TARGET Rs 1190, SL Rs 1110. On the daily time frame, the counter has formed a Cup and Handle chart pattern and the structure indicates breakout from resistance zone in the near term for fresh up move.
Mumbai: The benchmark indices witnessed a sharp selloff. BSE Sensex was down by 1456 points. On Monday, markets are down mainly due to continued strength in Brent crude prices, 10-year bond yields rose to 3.20 per cent from recent lows of 2.80 per cent, which is negative for equities. India's consumer price index (CPI) numbers will come on Monday at 5.30 pm and on Wednesday we have to face the outcome of the Fed meeting. All these news flows will invite fear/uncertainties in the near term, which is clearly visible in India's VIX, which is over 15 per cent and trading at 22.50.
"Technically, if the Sensex breaks and closes below the 52,500 level, it will be a major downside event for the market. In such a situation, the Sensex would fall to the level of 52,000-51,700 in the short term," says Shrikant Chouhan, head (equity research-retail), Kotak Securities. Also, it would remain under continued selling pressure due to the dismissal of long-term support levels. It is advisable to reduce a weak long position below the 52,500 level. Bank Nifty would also drop to 3,000 level if it closes below 33,500 level.
