Sensex continues to look bearish
On Tuesday, the S&P BSE Sensex settled at 57,858.15 points. Except IT, all other sectoral indices ended in the green with PSU bank, power, auto and bank rose 2-4 percent.
Sensex forms long bullish candle
Stock Picks
- ASTRAL: Below Rs2,040 with a target of Rs1,950 and Stop loss of Rs2,109. It has triple round bottom pattern in its weekly chart and strong expecting strong support breakout.
- SIS: Above Rs535 with a target of Rs590 and Stop loss of Rs498. It has weekly crossover of 13 EMA and sustain above 26 EMA.
- LAURUSLAB: Below Rs455 with a target of Rs405 and stop loss Rs479. It has double top pattern in its weekly chart.
- AUBANK: Above Rs1,235 with a target of Rs1,380 and stop loss of Rs1,202. It has flag pattern breakout.
- CIPLA: Above Rs910 with a target of Rs959 and stop loss of Rs882. It has flag pattern breakout.
(Source: CapitalVia)
Mumbai: On Tuesday, the S&P BSE Sensex settled at 57,858.15 points. Except IT, all other sectoral indices ended in the green with PSU bank, power, auto and bank rose 2-4 percent. BSE midcap and small cap indices gained 0.8-1 percent. Bulls attempt to re-group back in action. After early morning market swoon, the benchmark NSE Nifty swooped higher in the final hour of trade. On Tuesday, to turn around from the sell-off themes, the bulls took good support from good earnings report from stocks like Axis Bank, ICICI Bank and Maruti.
Long story short: All bulls eye FMOC meeting outcome to trickle in on January 26 and expect no big change on interest rate and then focus on Union Budget 2022 -2023. Technically, Sensex' daily charts are still painting a bearish picture; downside risk seen at 54,924 mark. From a chartist standpoint, the technical landscape will improve considerably only above Sensex 59,532 mark. So, until this resistance, volatility will be hallmark and the perma-bulls should strictly not assume any intraday strength as light at the end of the tunnel.
Massive profit booking will again be the preferred theme in near term if the Federal Reserve turns out to be more hawkish at FOMC meet. "We remain cautious on markets on backdrop of anticipation of a populist budget -- ahead of elections in five States," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
