Indices may remain volatile for next 2 weeks
- NAUKRI - Above 5376 with a target of 5430 and Stop loss of 5330. It has reversed from the support of 21 DMA
- EICHER MOTOR - Above 3040 with a target of 31000 and Stop loss of 2995. It has reversed from the support of 8 DMA
- TVS MOTORS - Above 535 with a target of 543 and Stop loss of 528. It is trading in an upward trending channel and is on the verge of a breakout
- HINDUNILVR - Above 2425 with a target of 2450 and Stop loss of 2400. It has a support of 8 and 40 DMA
- TCS - Above 3325 with a target of 3360 and Stop loss of 3290. It is trading in an upward trending channel
Mumbai: The week has been volatile for the traders', the benchmark BSE Sensex index for the first time hit the 50,000 mark and also registered new all-time high of 50184.01.
However, the index failed to sustain at higher level, and due to short term overbought conditions and profit booking near the 50,000 mark it slipped below to end the week at 48,878.54.
"We are of the view that, the structure of the index is volatile and likely to continue for the next couple of weeks," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
In the short run, Reliance Industries quarterly result outcome and global market trend would be the important triggers for the market. Bar Reversal kind of candle and daily charts formation indicates red flag near 50,185 level.
Hence strong possibility of quick short term price correction is not ruled out in the near term. For the next few trading sessions, 48,400 should be the sacrosanct level for the trend following traders, if it sustains above the same then uptrend texture likely to continue up to 48,800-49,100.
Further upside may also be possible that could lift the index till 49,450. On the flip side, dismissal of 48,400 possibly open another leg of correction till 48,100-47,600."