Trade long if the Sensex drops to 50,650-50,500 levels
Mumbai: The market showed further continuation today on the back of specific strength in public sector undertaking (PSU), energy and commodity stocks. However, indices retreat from higher levels mainly due to hefty gains of 4 per cent in the last two days. "Technically, we feel that the market is opening the window of consolidation between the broader range of 52,000 and 50,350 levels," says Shrikant Chouhan, Executive Vice President (equity technical research), Kotak Securities.
"On Friday, our strategy should be to trade long if the Sensex drops to 50,650-50,500 levels with a stop loss at 50,200 levels. On the higher side, the level of 52,000 seems achievable but for that, we need Sensex to remain above 51,500 levels," he added.
1. ADANIGAS - Above 509 with a target of 525 and Stop loss of 495. It has a support of 8 and 40 DMA.
2. BHARATFORG - Above 624 with a target of 650 and Stop loss of 599. It is an upward trending channel.
3. CUMMINSIND - Above 823 with a target of 850 and Stop loss of 800. It is an upward trending channel and on the verge of a breakout.
4. GUJGASLTD - Above 510 with a target of 530 and Stop loss of 493. It has a support of 8 and 40 DMA.
5. IBULHSGFIN - Above 227 with a target of 236 and Stop loss of 220. It has reversed from the support of 8 and 40 EMA.