Market Outlook:
S&P CNX Nifty opened gap-up but failed to sustain above 5000 levels in the absence of any following buying interest. Nifty till gap-up created on 27th Sept(4879-4905) is not closed then rally may continue towards 4980-5000 levels. Whereas if Nifty breaches the psychological 4875 levels then selling towards 4835 levels can be seen. Today being Derivatives Settlement day volatility may remain intact in the market, one should have cautious approach while trading. The stocks which are already corrected by more than 10% in this settlement may give further downside hence one should avoid weak stock which may correct more Most of the Metal stocks look weak JSWSTEEL, SAIL, TATASTEEL, STER, SESAGOA, HINDALCO along with LT can be best avoided.
§ Sensex- Sensex closed above the convergence of very short term moving averages and sustaining above 16700 levels may target towards 17050 levels. Being the Derivative settlement day, Quarterly and half yearly closing with just 2 trading days left so NAV propping by funds could be possible which normally gives exit. Whereas if Sensex fails to hold 16300 levels then selling may get intensified and it may fill the recent gap (16289-16051).
Technical Calls:
ARVIND(Close 98) The stock is trading near 52 weeks high levels with around 24% price gain in this Sept expiry. Sustaining the current levels may give further 6-8%% up move towards 103-105 in coming days. Counter is continuously making higher highs on daily, weekly and monthly charts indicating strength in it.
EDUCOMP(Close: 227) The stock has formed base around 200 levels and stock is making higher top higher bottom formation on daily charts which indicates strength in the counter. The stock may target 250-260 levels in near term and looks attractive in terms of Risk-Reward.
Technical View: Weak Stock heading towards Derivative settlement
JSWSTEEL-570 CAUTION ADVISED: The stock is trading below its all moving averages and making lower lows on weekly charts indicating weakness in it. Counter trading below 560 levels open for 520-510 levels in few trading sessions. One should exit the long leveraged position in any pullback.
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