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Level-based trading ideal strategy for investors

As long as BSE Sensex holds 55,100 -54,850 levels, the uptrend texture is intact. On the higher side the immediate hurdle would be 56,550-56,700. On the flip side dismissal of 54,850 may increase further weakness up to 54,600-54,400

Index forms long bullish candle on daily charts
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Index forms long bullish candle on daily charts

Stock Picks

- POLYPLEX: Above Rs2160 with a target of Rs2190 and Stop loss of Rs2140. The stock is in positive momentum and is at the support of 40 EMA.

- ANUPAM RASAYAN: Above Rs920 with a target of Rs960 and Stop loss of Rs890. It has a support of 8 EMA and has given a breakout in smaller time frame.

- JYOTHY LABS: Above Rs146 with a target of Rs155 and Stop loss of Rs140. It is at the support of 8 and 40 EMA.

- AKNSAI NEROLAC: Above Rs464 with a target of Rs475 and Stop loss of Rs455. It has reversed from the recent support zone.

- APL APOLLO: Above Rs930 with a target of Rs950 and Stop loss of Rs915. It has reversed from the support of 8 EMA.

(Source: Capital Via)

Mumbai: After strong uptrend rally on Tuesday the benchmark indices witnessed profit booking at higher levels. The BSE Sensex was down by 709 points. Today despite tepid market condition Sensex opened on a positive note, but due to consistent profit booking at higher levels it corrected sharply. From the day's highest level, the BSE Sensex shed over 940 points. Correction was seen among sectors like metals, oil and gas whereas some buying interest was seen in selective auto and consumption space.

Technically, the short-term texture of the market is still on the bullish side. However, on daily charts the index has formed a bearish candle which indicates strong possibility of temporary weakness.

"We are of the view that, as long as the Sensex holding the levels of 55,100 -54,850 the uptrend texture is intact. On the higher side the immediate hurdle would be 56,550-56,700," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities. On the flip side dismissal of 54,850 may increase further weakness up to 54,600-54,400. The texture of the market is volatile, hence level-based trading would be the ideal strategy for the day traders, he added.

Indian equities benchmarks fell at day's low troughs in the late afternoon session, mirroring weak global indications, as rising Covid-19 cases in China shook investor confidence already shaken by the Russia-Ukraine conflict. Traders failed to notice that the unemployment rate for people aged 15 and above in urban areas fell to 12.6 per cent in April-June 2021, down from 20.8 per cent the previous month, an analyst said. On the global front, Asian markets were generally in the red as traders kept an eye on developments in the Ukraine war and diplomatic efforts to end the crisis, while Hong Kong took a beating when China put Shenzhen under lockdown, fueling a tech sector collapse.

Kumud Das
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