Fresh pullback rally possible after 59,900 breakout
Below the same the weak formation is likely to continue till 59,300-59,150; contra traders can take long bet near 59,150 with strict 59,000 support stop loss
Quick intraday relief rally likely
Stock Picks
- DELTACORP: Above Rs330 with a target of Rs345 and Stop loss of Rs320. The stock is trading above resistance and RSI is trading at 50.
- BALRAMCHIN: Above Rs510 with a target of Rs535 and Stop loss of Rs498. The crossover of 20 and 80 EMA has seen today and closed above both.
- DIXON: Above Rs4595 target of Rs4695 and Stop loss of Rs4545. The stock is closing above 100 SMA AND 200 SMA on 15 min chart.
Mumbai: On the second consecutive day, BSE Sensex closed lower. Sensex was at the day's lowest level at 59,610. Due to weak global market sentiment our market opened with a gap down and post weak opening entire day it was hovered within the range of 59,500-59,900. Among sectors, private banks, IT, and selective financial stocks witnessed technical sell off whereas despite weak market momentum, PSU Banks and Metal stocks outperformed both the indices and rallied over 1 per cent.
"Technically, the intraday texture of the market is still in to the down side and fresh pullback rally possible only after 59,900 breakout. For the traders, 59,900 would act as immediate hurdle, below the same the weak formation is likely to continue till 59,300-59,150. on the flip side, above 59,900 the index could move up to 60,200-60,500," says Shrikant Chouhan, head (equity research-retail), Kotak Securities. The Sensex is having a strong support between 59,300-59,150, hence contra traders can take long bet near 59,150 with strict 59,000 support stop loss, he added.
