Charts signal further weakness
If Index is trading below 60,500, correction formation likely to continue till 59,800-59,500; contra traders can take long bet near 59,500 with strict 59,350 support stop loss
Quick intraday relief rally likely
Stock Picks
- JUST DIAL: Above Rs800 with a target of Rs820 and Stop loss of Rs780. The stock is in positive momentum and is at the support of 8 and 40 EMA.
- DCM SHRIRAM: Above Rs1250 with a target of Rs1280 and Stop loss of Rs1220. It has a support of 8 EMA and has been on the verge of the breakout.
- ASTRAL: Above Rs2100 with a target of Rs2150 and Stop loss of Rs2065. It is at the support of 8 and 40 EMA.
- RALLIS: Above Rs260 with a target of Rs268 and Stop loss of Rs255. It has reversed from the recent support zone.
- HIKAL: Above Rs438 with a target of Rs448 and Stop loss of Rs430. It has reversed from the support of 8 EMA.
(Source: Capital-Via)
Mumbai: The benchmark indices witnessed profit booking at higher levels, BSE Sensex was down by 435 points. Among sectors, buying interest continued in Auto and FMCG stocks, both the indices rallied over one per cent, whereas banking and financial stocks registered technical selloff.
Technically, on intraday charts, the index has formed double top kind of formation which indicates further weakness from the current levels. The index also formed bearish candle on daily charts which is broadly negative. However, the medium-term texture of the market is still in to the positive side.
"We are of the view that, as long as the index is trading below the level of 60,500 the correction formation is likely to continue till 59,800-59500. On the flip side, fresh uptrend possible only after 60,500 range breakout," says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
Above which, the index could move up to 60,750-61,000. Contra traders can take long bets near 59,500 with strict 59,350 support stop loss. Due to profit booking by investors, Indian market benchmarks continued to trade below the neutral line in the late afternoon session, say analysts.
Petrol and diesel prices were both increased by 80 paise per litre, bringing the total increase in rates in the last two weeks to Rs9.20 per litre. This is the 13th price rise since the end of a four-and-a-half-month rate adjustment break on March 22. Domestic passenger vehicle retail sales fell 4.87 percent to 2,71,358 units in March, compared to the same month last year, indicating that the automobile sector remained concentrated. In March 2021, PV sales totaled 2,85,240 units.
