Market in bearish reversal formation
Mumbai: Today, strong rejection at 52,500 levels resulted in a vertical decline in the market. The Sensex fell to 51,717 in a short span of time. The market breadth, which was extremely positive in the first half of the trading session, turned negative in the second half and the market closed comfortably below the levels of 52,100 points.
It's a bearish reversal formation for the market and in the next one or two sessions, the market may fall to 51,600/51,300 levels.
The sell-off was mainly in small-cap and mid-cap stocks, which had seen strong momentum over the past few weeks, while other sectors too displayed weakness today.
"Buy in select companies, if Sensex falls to 51,600/51,300 levels," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities
l VINATIORGA - Above Rs1,860 with a target of Rs1,930 and Stop loss of Rs1,800. It is trading in a Strong uptrend and is on the verge of a fresh breakout
l KEI - Above Rs700 with a target of Rs725 and Stop loss of Rs680. Is has support of 8 and 40 EMA
l LUXIND - Above Rs3,310 with a target of Rs3,390 and Stop loss of Rs3,250. The stock is in upward trending channel and is on the verge of a breakout
l TITAN - Above Rs1,740 with a target of Rs1,780 and Stop loss of Rs1,700. It has a support of 8 and 40 EMA
l NAUKRI - Above Rs4,720 with a target of Rs4,790 and Stop loss of Rs4,670. It has reversed from the support of 8 EMA