Mkt texture is non-directional
Sensex traded below 50-day SMA or 65,800 level, which is largely negative
Mumbai: On the backdrop of geo-political tensions, the benchmark indices witnessed selling pressure at higher levels as BSE Sensex was down by 483 points. Among sectors, Media and PSU Banks indices shed over 1.5 per cent whereas IT stocks witnessed some buying interest at lower levels.
The intraday texture of the market is non-directional perhaps traders are waiting for either side breakout. For the bulls now, 50-day SMA or 65,800 would be the immediate resistance zone.
While 65,400 could be the crucial support zone for the traders. Above 65,800, the market could move up till 66,000-66,100. On the flip side, below 65,400 it could retest the level of 65,100-65,000. The current market texture is volatile. Hence, level-based trading would be the ideal strategy for the day traders.
“Technically, after a gap-down opening, entire day the Sensex traded below 50-day SMA (Simple Moving Average) or 65,800 level, which is largely negative,” says Shrikant Chouhane of Kotak Securities.
Stock Picks
LTIM: Buy, CMP Rs5,220, Target Rs5,480, SL Rs5,110
On daily time frame, the stock had been into an accumulation phase post its correction. Therefore, strong reversal from the current levels is expected in the coming trading sessions.
HINDUNILVR: Buy, CMP Rs2,508, Target Rs2,630, SL Rs2,450
From the last few sessions, the counter is stuck into a rectangle formation and trading in a range-bound move. However, the price action suggests at a likely breakout from the consolidation for fresh up move.
SBILIFE: Buy, CMP Rs1,285, Target Rs1,350, SL Rs1,250
After a medium-term correction, eventually the stock took the support and it has formed Double Bottom chart formation. The overall pattern offers buying opportunity for the positional traders.
(Source_Kotak Securities)
