Bears continue to be in total control
- DALBHARAT - Above 1590 with a target of 1635 and Stop loss of 1560. It is an upward trending channel and on the verge of a breakout.
- CENDURANCE - Above 1428 with a target of 1450 and Stop loss of 1405. It has a support of 8 EMA.
-ITC - Above 221 with a target of 228 and Stop loss of 215. It is an upward trending channel and is reversed from the support of 8 and 40 EMA.
- BHARTIARTL - Above 534 with a target of 555 and Stop loss of 515. It has a support of 8 and 40 DMA.
- ADANITRANS - Above 785 with a target of 805 and Stop loss of 765. It has reversed from the support of 8 EMA.
Mumbai: The Benchmark indices witnessed extremely volatile trading session near 50-day SMA or 49,963 support level. Today, the Sensex opened with a 360-point gap up but once again bears took the charge and due to constant profit booking, it corrected over 1,330 points from the day's highest level.
On the domestic front, IT, Pharma and PSU banks witnessed selling pressure whereas buying was seen in ITC, Bajaj Auto and selective Metal stocks. "We are of the view that, the bears are still in total control but intraday chart showing temporary pause near 48,900 hence, bears may prefer to take caution stance near 50-day SMA," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
Technically, the index still maintains lower high and lower low series which suggests medium term weakness. However, on intraday charts, the index is in to the oversold zone and currently trading near 50-day SMA for the next few trading sessions 50-day SMA or 49,963 would be sacrosanct level. Trading below the same correction wave likely to continue till 48,890-48,700 on the other side, 49,963 could be the immediate hurdle sustain above the same then we can expect quick relief rally up to 50,100-50,300.