A short-term correction possible below 58K

Stock Picks

- M&MFIN: Above Rs170 with a target of Rs173 and Stop loss of Rs168. The stock is in upward trending channel and is on the verge of a breakout.

- GUJGASLTD: Above Rs698 with a target of Rs705 and Stop loss of Rs691. It has support of 8 and 40 EMA.

- OIL: Above Rs181 with a target of Rs184 and Stop loss of Rs179. The stock is in upward trending channel and has given a breakout.

- LUPIN: Above Rs988 with a target of Rs998 and Stop loss of Rs980. It has a support of 8 EMA.

- NILKAMAL: Above Rs2,806 with a target of Rs2,836 and Stop loss of Rs2,778. It has reversed from the support of 8 EMA.

(Source-CapitalVia)

Mumbai: The benchmark indices witnessed intraday selling pressure near 58,550 resistance level. Tuesday's intraday activity has been lackluster with a momentum of near 500 points.

The global cues were tepid too. Among sectors, after a remarkable rally, Reality and IT stocks witnessed profit booking at higher level. Whereas, some buying was seen in selective financial and FMCG stocks. After 2,840 points rally, index is trading within a narrow range, which indicates bulls may start feeling discomfort to go further long near 17,450 points.

But technically, a short-term correction is possible only below 58,000 points. For the next few trading sessions, 58,000 should act as a trend decider level, above which we can expect one more uptrend wave towards 58,550-58,700 However, trading below the same would trigger quick intraday correction up to 57,700-57,500," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.