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The strategy should be to buy on dips
image for illustrative purpose
Mumbai The formation of an inverted hammer on Wednesday served as a bearish formation for the market.
The Sensex closed at 49,565, the lowest point of the day. Energy and metal stocks plummeted amid growing concerns about inflation in the United States. Although the market fell, the decline was not severe. The market breadth remained at 1: 1 which is an indicator of mixed sentiment in the market.
"The strategy should be to buy on dips. Be a buyer in large-cap metal stocks with a medium-term view as most of them are available at significant support levels," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
Stock Picks
- VINATIORGA - Above 1850 with a target of 1890 and Stop loss of 1810. It is trading in a Strong uptrend and we have witnessed a breakout in the stock
- BPCL - Above 458 with a target of 468 and Stop loss of 449. It has a support of 8 and 40 EMA.
- KSCL - Above 775 with a target of 800 and Stop loss of 750. The stock is in upward trending channel and is on the verge of a breakout.
- AUROPHARMA - Above 1031 with a target of 1050 and Stop loss of 1015. It has a support of 8 and 40 EMA.
- LICHSGFIN - Above 454 with a target of 465 and Stop loss of 445. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
