Investors need to be buyers in 52,450-52,300 range
The stock market remained in a narrow range, but with a negative bias.
Market likely to stay range-bound
Mumbai: The stock market remained in a narrow range, but with a negative bias. Weakness in the Asian markets, consistent selling pressure from FIIs for the last three days, and steadiness in the prices of Brent crude at $75 could be the few reasons to keep the market within the trading range.
The market failed to sustain at 52,900 level, which is an upward boundary for the market, and weakness from the same could result in gradual weakness towards 52,300 that is the lower boundary of the trading range, and coincidently 20-day EMA is also placed at the same levels that should act as a reversal point for the market.
Today, we witnessed weakness in financials, metals, and auto companies, which is an indication of buying breadth is poor. The activity was more into FMCG and Pharmaceutical stocks. "As the market is in the trading range, we need to be buyers between 52,450 and 52,300 levels. Keep a final stop loss at 52,100 levels," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
Stock Picks
- MFSL- Above Rs1,100 with a target of Rs1,140 and Stop loss of Rs1,070. It is trading in a Strong uptrend and is on the verge of a breakout.
- VINATIORGA- Above Rs1,860 with a target of Rs1,890 and Stop loss of Rs1,830. It has support of 8 and 40EMA.
- FSL- Above Rs190 with a target of Rs198 and Stop loss of Rs182. The stock is in upward trending channel and is on the verge of a breakout.
- GNFC- Above Rs380 with a target of Rs395 and Stop loss of Rs365. It has a support of 8 EMA.
- LICHSGFIN- Above Rs480 with a target of Rs495 and Stop loss of Rs467. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
