Focus on fin, pharma, comm vehicles
- ABB-Above 1420 with a target of 1460 and Stop loss of 1380. It has reversed from the support of 8 DMA.
- ADANIGAS-Above 390 with a target of 405 and Stop loss of 380. It has reversed from the support of 8 AND 40 EMA.
- ICICIBANK-Above 545 with a target of 555 and Stop loss of 535. It is trading in an upward trending channel.
- GUJGASLTD-Above 378 with a target of 390 and Stop loss of 370. It has a support of 8 and 40 DMA.
- LAXMIMACH-Above 5350 with a target of 5450 and Stop loss of 5250. It is trading in an upward trending channel.
Mumbai: On a weekly and monthly basis, Sensex closed in negative territory as saw swing of 1,250 points in the intra-day trading. On the dismissal of that Sensex entered in technical sell-off and in a very short span of time, the market dropped to 46,160 levels. On a monthly basis, the market has formed bearish continuation formation and closed lower with losses over 5 per cent. On a monthly basis, Sensex has formed hammer candlestick formation, supported by FII's selling. It clearly suggests that the hot money is exiting from the market ahead of the major event - Union Budget.
Till date, FIIs have sold more than Rs 6,000 crore in the cash segment and reduced positions on the Index futures significantly. The crucial supports would be at 46,100/45,700 and 45,000 levels. However, closing below the levels of 45,000 would send the market to retest the previous all-time high level, which is at 43,000 levels.
On the higher side, 47,200 and 47,800 would be major hurdles. In the best-case scenario, we could see 49,000 levels and trend would turn extremely bullish if Sensex crosses 50,200.
The strategy should be to reduce weak long positions between 47,200 and 49,000 levels. Buying is advisable if Sensex drops to 46,000 with a final stop loss at 45,000 levels. "The focus should be specifically on Financials, Pharmaceuticals and Commercial Vehicles," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.