Buy on dips around 52,300 level
The BSE Sensex remained sluggish throughout the day and gradually declined to the level of 52,280 points.
Trading below 58.2K may trigger intraday correction
Mumbai: The BSE Sensex remained sluggish throughout the day and gradually declined to the level of 52,280 points. Thursday's decline was led by technology, banks and commodities, which have a large weightage in the index composition. Volatility is declining, which is a sign that bulls are resting and they could bring volatility to the market. India VIX closed at 12.63, the lowest level in the last 18 months. On a monthly basis, the market remained in the narrow range of 500 points, which is an unusual and even narrow trading range over the last six months.
Long traders need to be careful when adding long positions at high levels and such markets invite unpleasant events. For the day, the BSE Sensex closed below the levels of 52,500 and on Friday, we may see the market hitting the lower boundary which is between 52,350 and 52,200 levels. "Our strategy should be to buy on dips around 52,300 levels and keep a final stop loss at 52,000 level. On the higher side, 52,500-52,650 and 52,800 would be major obstacles," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
Stock Picks
- HEROMOTOCO: Above Rs2,930 with a target of Rs3,010 and Stop loss of Rs2,875. It is trading in a Strong uptrend and is on the verge of a breakout.
- NTPC: Above Rs118 with a target of Rs124 and Stop loss of Rs115. It has support of 8 and 40EMA.
- MARUTI: Above Rs7,585 with a target of Rs7,810 and Stop loss of Rs7,435. The stock is in upward trending channel and is on the verge of a breakout.
- ONGC: Above Rs120 with a target of Rs125 and Stop loss of Rs118. It has a support of 8 EMA.
- ASIANPAINT: Above Rs3,025 with a target of Rs3,116 and Stop loss of Rs2,965. It has reversed from the support of 8EMA.
(Source-CapitalVia)
