Sensex forms bearish gap down candlestick

Stock Picks

- POLYPLEX: Above Rs2,150 with a target of Rs2,200 and Stop loss of Rs2,110. The stock is in consolidating near the high and has reversed from the support of 8 and 40 EMA

- PGHH: Above Rs15,700 with a target of Rs15,850 and Stop loss of Rs15,600. It has support of 8 and 40 EMA

- TCS: Above Rs3,800 with a target of Rs3,880 and Stop loss of Rs3,740. The stock has reversed from the support levels and is on the verge of a breakout in smaller time frame

- CUMMINSIND: Above Rs967 with a target of Rs980 and Stop loss of Rs955. It has a support of 8 & 40 EMA

- CAPRIGLOBAL: Above Rs630 with a target of Rs650 and Stop loss of Rs610. It has support of 8 and 40 EMA

(Source: CapitalVia)

Sensex may hit 56,100 or 55,800pts; 57,000 level will be immediate intraday resistance level

Mumbai: On Monday, we witnessed blood bath in Indian markets with broader index down more than three per cent. The sell-off was mainly on account on Russia-Ukraine tensions. Almost all major indexes across globe were in red. Investors are advised to keep strict stop loss considering the volatility in the markets. Also buy on dips is suggested but investors should plan their position keeping adequate liquidity.

"For banking index 36,600 will act as very strong support level. Once this level is breached than next strong support is around 36,400 levels post which 32,645 will act as next strong support. On upper side 37,070 will be strong resistance level, post which next strong resistance will be at 37,300 to 37,500 levels," says Rahul Sharma, co-owner, Equity 99. On Monday, the market witnessed a sharp selloff. The BSE Sensex was down by 1,800 points. Due to weak global markets, geopolitical tension and rising crude oil prices concerns, the benchmark indices opened with a gap down and post weak opening witnessed selling pressure throughout the day.

Among sectors, all the major sectoral indices were traded in the red. But PSU Banks index lost the most, shed over five percent. Technically, the BSE Sensex has formed bearish gap down candlestick formation, which suggests further weakness from current level.

Direction wise, now BSE Sensex trading below 57,000 the chances of hitting 56,100 and 55,800 would turn bright.

"On the flip side, fresh pullback rally possible only after dismissal of 57,000 level. Which is immediate intraday resistance level," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.