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Charts still painting a bearish picture

The smart money still not looking to buy; instead identifying selling opportunities on any strength. Well, bears remained in total control in Monday’s trade as massive long unwinding seen.

Profit booking, global cues subdue equities; realty stocks fall
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Profit booking, global cues subdue equities; realty stocks fall 

Stock Picks

- AVANTIFEED: Above Rs635 with a target of Rs670 and Stop loss of Rs612. It has weekly crossover of 5 EMA and sustain above 13 EMA.

- SIS: Above Rs535 with a target of Rs590 and Stop loss of Rs498. It has weekly crossover of 13 EMA and sustain above 26 EMA.

- CHOLAFINANCE: Above Rs675 with a target of Rs725 and stop loss Rs625. It has weekly crossover of 13 EMA AND 26 EMA.

- ONGC: Above Rs168 with a target of Rs180 and stop loss of Rs162. It is expecting 52 week breakout and RSI supportive is giving strength.

- CIPLA: Above Rs895 with a target of Rs950 and stop loss of Rs860. It has reversal trend.

(Source: Kotak Securities)

Mumbai: The smart money still not looking to buy; instead identifying selling opportunities on any strength. Well, bears remained in total control in Monday's trade as massive long unwinding seen.

Blame it to soaring inflation and slowing economic growth concerns which have become global trends. Fed rate hike speculation was also seen as primary negative catalyst weighing on sentiments at Dalal Street.

From a chartist standpoint, the technical landscape will improve considerably only above Sensex 59,597 mark. So, until this resistance, volatility will be hallmark and the perma-bulls should strictly not assume any intraday strength as light at the end of the tunnel.

Long story short: All eyes FMOC meeting outcome to trickle in on January 26 and then on Union Budget 2022 -2023. "We suspect, bears will remain in full control as the pessimistic theme at Dalal Street is also surrounded on backdrop of anticipation of a populist budget--ahead of elections in five States. Massive profit booking will continue to be the preferred theme in near term and nevertheless, any 'risk-on' move will have to wait," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.

Technically, Sensex/Nifty's daily charts are still painting a bearish picture; downside risk seen at 54,984 mark and then aggressive targets at 53,643, he added. Rahul Sharma, co-owner, Equity 99, said: "We witnessed bloodbath in markets with market correcting almost three per cent driven by continuous FII selling and high uncertainty in the market ahead of US Fed meeting. US markets, crypto, Indian markets all are falling as FED is taking out the money. The clarity would be only after the FOMC meeting on Wednesday. However, this fall is a good opportunity for adding quality stocks. We expect the volatility to continue in the market for a short run."

Kumud Das
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