Possible correction till 51,700-51,750 levels
Due to selling in frontline counters, domestic stock markets have widened their losses in the late afternoon session, staying near the day's low point.
Nifty forms strong bullish breakout candle
Mumbai: Due to selling in frontline counters, domestic stock markets have widened their losses in the late afternoon session, staying near the day's low point. Traders were unable to get support after the Confederation of Indian Industry (CII) announced on Thursday that the India's gross domestic product (GDP) is likely to expand at 9.5 percent this fiscal year (FY 2021-22). This will bring GDP up to somewhat higher levels than in FY20. Substantial external demand and widespread vaccination coverage will sustain strong growth in the second half, allowing economic activity to resume. "We witnessed profit booking the market following the global trends in the market. Market continues to resist above 52,500 points and has taken a dip at 52,050 points. If market closes below the levels of 52,200 points, we might see a correction till the levels of 51,700-51,750," CapitalVia said. An important event ended in the market yesterday, but today the market was neutral at the level of 51,700.
This confirms that the market trend is strong and may reach 52,800 or 53,100 level once again. Today, Technology stocks and Reliance gave strong support to the index. The Sensex could reach fresh levels on Friday if the indices don't close below the levels of 51,700. On an immediate basis, 52,500 and 52,700 levels would be major hurdles.
'Below the levels of 51,700, the Sensex would gradually fall to 51,300 or in the worst-case scenario 51,000," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities
Stock Picks
- CRISIL_Above Rs2,465 with a target of Rs2,520 and Stop loss of Rs2,420. It is trading in a Strong uptrend and is on the verge of a breakout.
- RALLIS_Above Rs355 with a target of Rs363 and Stop loss of Rs348. It has support of 8 and 40 EMA.
- JUBLFOOD_Above Rs3,265 with a target of Rs3,315 and Stop loss of Rs3,210. The stock is in upward trending channel and is on the verge of a breakout.
- VINATIORGA_Above Rs1,770 with a target of Rs1,810 and Stop loss of Rs1,735. It has a support of 8 EMA.
- BATAINDIA_Above Rs1,680 with a target of Rs1,720 and Stop loss of Rs1,650. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
