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Go for level-based trading with strict stop losses

On the last day of October F&O expiry series the benchmark index Sensex plunged over 1300 points. On Thursday, after a weak opening the nifty swiftly break the 60,700 important support level and post breakdown intensified the weak momentum throughout the day.

Indian equities open negative; Sensex, Nifty indices down 1.5% each
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Indian equities open negative; Sensex, Nifty indices down 1.5% each

Stock Picks

- CHOLAFIN: Above 632 with a target of 650 and Stop loss of 620. The stock is in upward trending channel and has given the breakout.

- ULTRACEMCO: Above 7500 with a target of 7600 and Stop loss of 7400. It has support of 8 and 40 EMA.

- BALKRISIND: Above 2515 with a target of 2560 and Stop loss of 2480. The stock is in upward trending channel and is on the verge of a breakout.

- APOLLOHOSP: Above 4330 with a target of 4390 and Stop loss of 4280. It has a support of 8 EMA.

- ASTRAL: Above 2210 with a target of 2250 and Stop loss of 2170. It has support of 8 and 40 EMA.

(Source-CapitalVia)

Mumbai: On the last day of October F&O expiry series the benchmark index Sensex plunged over 1300 points. On Thursday, after a weak opening the nifty swiftly break the 60,700 important support level and post breakdown intensified the weak momentum throughout the day.

Among sectors, almost all the major sectoral indices traded in the red, but sharp technical sell off was seen in PSU Banks, Reality and Metal stocks. Technically, the short-term texture of the market has been changed from buy on dips to sell on rallies. After a long time, the Sensex succeed to close below 20-day SMA which is broadly negative for the market.

For the day traders, the short-term trend is weak but, due to temporary oversold situation, the market may trigger a quick pullback rally.

"The intraday day trade set up suggest, 60,400 and 60,500 would be the key hurdle for the traders below the same correction wave is likely to continue till 59,650-59,550. Contra traders can take a long bet near 59,550 with strict 59,350 support stop loss," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.

"The texture of the market is weak hence level-based trading with strict stop losses would be the ideal strategy for the day traders," he added.

Another analyst said that it is going to be crucial for the short-term market scenario to sustain above the 59,500 Nifty50 Index support zone. If the market is unable to sustain the level of 59,500, we can

witness lower levels of 58,500. Technical indicator suggests, a volatile movement in the market.

Kumud Das
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