Sensex holding Lower Top formation
The short-term market texture is still in to the weak side, but one technical bounce back possible if the index succeeds to trade above 72,200pts
Mumbai: The benchmark indices continued profit booking at higher levels as BSE Sensex was down by 456 points. Among sectors, IT index lost the most, shed over 2.5 percent whereas despite weak market conditions Media index gained over 1.5 percent.
Technically, after a long time, Sensex slipped below 50-day SMA (Simple Moving Average) and on intraday charts also it is holding Lower Top formation, which is largely negative.
“We are of the view that, the short-term market texture is still in to the weak side, but one technical bounce back possible if the index succeeds to trade above 72,200 points,” says Shrikant Chouhan, head (equity research), Kotak Securities.
On the down side, the index could find support between 72,500-72,300.
On the other side above 72,200 level, it could bounce back till 72,500-72,700 range. The worsening situation in the Middle-East with conflict between Iran and Israel flaring up had engulfed Dalal Street. Investors worldwide, including in India, have turned cautious and resorted to profit-taking.
“If the situation turns bad, we may see extended broad-based selling in local markets. Geopolitical tensions and uncertainty over interest rate cut could have a bearing on the markets,” says Prashanth Tapse, senior V-P (research), Mehta Equities Ltd
CMP (Current Market Price); SL (Stop Loss)/ All prices in Rs
STOCK PRICES
Tega Industries
Buy | CMP: 1421.15 | SL: 1370 | Target: 1,500-1,550
The stock has given a strong breakout above its all-time high mark of 1,380 on its daily charts. With the volumes spiking and being nearly twice its Avg (30) days traded volume, it is expected that the stock should head higher towards 1,500-1,550. A strict stop loss should be kept at the 1,370 mark for all buy positions.
Sandhar Technologies
Buy | CMP: 528.80 | SL: 515 | Target: 580
The stock has given a good breakout above its anchor VWAP resistance mark of 525 on its daily charts, giving strong signs of momentum pickup. With the volume on its daily charts being nearly 5 times its Avg (30) days traded volume, it is expected that the stock should head higher towards 580 and above with a set stoploss at the 515 mark.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
