Mkt takes a pause after rallying 700 pts
image for illustrative purpose
Mumbai The market remained completely calm in the first session of the trading session, however, we witnessed a vertical decline in the second half due to a sudden fall in US stock futures. The Sensex fell by 290 points.
Shares of Finance and Metals were among the first losers, while pharmaceutical and realty stocks rose marginally. The Sensex has formed a classic inverted hammer after hitting a major level at 50,280. It can be either bearish or bullish continuation for the market. If the market fell below 49,900, the chances of hitting 49,600/49,500 levels would be brighter.
On the other hand, the refusal to come down to the level of 49,900 would be positive for the market. Resistance would be at 50,280 and 50,500 levels.
"Technically, we feel this is a temporary break that the market has taken after rallying 700 points. After completing the corrective consolidation, we could see upward move in the market," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
Stock Picks
- MOTHERSUMI - Above 245 with a target of 253 and Stop loss of 238. It is trading in a Strong uptrend and we have witnessed a breakout in the stock
- AUROPHARMA - Above 1030 with a target of 1060 and Stop loss of 1000. It has a support of 8 and 40 EMA.
- KPRMILL - Above 1530 with a target of 1570 and Stop loss of 1490. The stock is in upward trending channel and is on the verge of a breakout.
- DABUR - Above 540 with a target of 550 and Stop loss of 530. It has a support of 8 and 40 EMA.
- NAVINFLOUR - Above 3300 with a target of 3360 and Stop loss of 3250. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
