Keep the metal stocks on watch list
- NMDC - Above 118.10 with a target of 123.30 and Stop loss of 112.90. The price has support of 8 & 40 EMA.
- NATIONALUM - Above 51.40 with a target of 54.40 and Stop loss of 48.40. It is an upward trending channel.
- SAIL - Above 66.10 with a target of 70.30 and Stop loss of 61.90. It has bounced from support of 40 EMA.
- SUNTV - Above 528.40 with a target of 548 and Stop loss of 507.90. The price bounced from 40 EMA and is trading in upward channel.
- SRF - Above 5820 with a target of 6016 and Stop loss of 5624. It has support of 40 EMA and has given consolidation breakout.
Mumbai: Although the market has broken a significant base at 51,850, it has not fallen further, which indicates to us that the market has opened a window of consolidation. We could see the market trade between 52,150 and 51,250 levels for one or two days. Below 51,550 levels, Sensex could fall to 51,350 or 51,250 levels.
A decisive break of 51,330 would result in a sharp pullback to 52,500 levels. "The strategy should be to buy in deep panic around 51,200 levels with a stop loss at 50,900 levels. The metal stocks should be on the watch list," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.