Business Standard

Short-term correction likely

The BSE Sensex may face resistance at 19,940-20,025, while it may seek support at 19,635-19,540

Rex Cano  |  Mumbai 

The markets have started the year on a promising note, recording gains in all the four trading sessions so far. The Sensex, which started the week on a tepid note, rallied to a fresh two-year high of 19,797, finally ending at 19,784, a gain of 339 points.

Among the Sensex-30 stocks, was the major gainer, rising about seven per cent to Rs 285, while surged 6.6 per cent to Rs 242. Gail India, SBI, Dr.Reddy’s, ICICI Bank, Bajaj Auto, Wipro and Maruti Suzuki were the other major gainers. At Rs 282, ITC shed 2.3 per cent. Hero MotoCorp and Sun Pharma were the other notable losers, down 0.5 per cent each.

According to the monthly Fibonacci charts, the Sensex has given a ‘buy’ signal. As long as the index sustains at above 19,600, the bias is likely to remain bullish. On the upside, the index could rally to 19,940-odd levels, above which the next target is 20,100. On the flip side, in case the Sensex breaks below 19,600, we could see a fresh correction in the markets; the index could then slide to 19,250-odd levels.

The Sensex may face resistance at 19,940-20,025, while it may seek support at 19,635-19,540.

The moved in a range of 125 points. From a low of 5,897, it rallied past the 6,000-mark after almost two years, touching a high of 6,021. It finally settled at 6,016, a gain of 108 points.

According to the daily charts, the Nifty rallied once it got a positive breakout above 5,940. The bias is likely to remain bullish, as long as the index sustains at above 6,006. The near-term upside target for the index is pegged at 6,050; the medium-term target is 6,150-odd levels. In case, the index trades consistently below 6,006, we could see a short-term correction; the index could slip to 5,930-odd levels. Sustained trade below 5,910-odd levels could trigger a deeper correction to 5,800-odd levels.

The momentum oscillators on the daily charts seem to be tiring out. Hence, the possibility of a correction in the near term seems high. However, on the weekly charts, the momentum oscillators continue to remain in favour of the bulls.

To conclude, 6,006 is the key pivot point in the short-term. On the upside, the index could test 6,050-odd levels, above which the next target is 6,150. On the flip side, in case, the index breaks below 6,006, we could see a short-term correction to 5,930-odd levels, with the possibility of a slide to 5,800-odd levels.

RECOMMENDED FOR YOU

Short-term correction likely

The BSE Sensex may face resistance at 19,940-20,025, while it may seek support at 19,635-19,540

The markets have started the year on a promising note, recording gains in all the four trading sessions so far. The Sensex, which started the week on a tepid note, rallied to a fresh two-year high of 19,797, finally ending at 19,784, a gain of 339 points.

The markets have started the year on a promising note, recording gains in all the four trading sessions so far. The Sensex, which started the week on a tepid note, rallied to a fresh two-year high of 19,797, finally ending at 19,784, a gain of 339 points.

Among the Sensex-30 stocks, was the major gainer, rising about seven per cent to Rs 285, while surged 6.6 per cent to Rs 242. Gail India, SBI, Dr.Reddy’s, ICICI Bank, Bajaj Auto, Wipro and Maruti Suzuki were the other major gainers. At Rs 282, ITC shed 2.3 per cent. Hero MotoCorp and Sun Pharma were the other notable losers, down 0.5 per cent each.

According to the monthly Fibonacci charts, the Sensex has given a ‘buy’ signal. As long as the index sustains at above 19,600, the bias is likely to remain bullish. On the upside, the index could rally to 19,940-odd levels, above which the next target is 20,100. On the flip side, in case the Sensex breaks below 19,600, we could see a fresh correction in the markets; the index could then slide to 19,250-odd levels.

The Sensex may face resistance at 19,940-20,025, while it may seek support at 19,635-19,540.

The moved in a range of 125 points. From a low of 5,897, it rallied past the 6,000-mark after almost two years, touching a high of 6,021. It finally settled at 6,016, a gain of 108 points.

According to the daily charts, the Nifty rallied once it got a positive breakout above 5,940. The bias is likely to remain bullish, as long as the index sustains at above 6,006. The near-term upside target for the index is pegged at 6,050; the medium-term target is 6,150-odd levels. In case, the index trades consistently below 6,006, we could see a short-term correction; the index could slip to 5,930-odd levels. Sustained trade below 5,910-odd levels could trigger a deeper correction to 5,800-odd levels.

The momentum oscillators on the daily charts seem to be tiring out. Hence, the possibility of a correction in the near term seems high. However, on the weekly charts, the momentum oscillators continue to remain in favour of the bulls.

To conclude, 6,006 is the key pivot point in the short-term. On the upside, the index could test 6,050-odd levels, above which the next target is 6,150. On the flip side, in case, the index breaks below 6,006, we could see a short-term correction to 5,930-odd levels, with the possibility of a slide to 5,800-odd levels.

image
Business Standard
177 22

Short-term correction likely

The BSE Sensex may face resistance at 19,940-20,025, while it may seek support at 19,635-19,540

The markets have started the year on a promising note, recording gains in all the four trading sessions so far. The Sensex, which started the week on a tepid note, rallied to a fresh two-year high of 19,797, finally ending at 19,784, a gain of 339 points.

Among the Sensex-30 stocks, was the major gainer, rising about seven per cent to Rs 285, while surged 6.6 per cent to Rs 242. Gail India, SBI, Dr.Reddy’s, ICICI Bank, Bajaj Auto, Wipro and Maruti Suzuki were the other major gainers. At Rs 282, ITC shed 2.3 per cent. Hero MotoCorp and Sun Pharma were the other notable losers, down 0.5 per cent each.

According to the monthly Fibonacci charts, the Sensex has given a ‘buy’ signal. As long as the index sustains at above 19,600, the bias is likely to remain bullish. On the upside, the index could rally to 19,940-odd levels, above which the next target is 20,100. On the flip side, in case the Sensex breaks below 19,600, we could see a fresh correction in the markets; the index could then slide to 19,250-odd levels.

The Sensex may face resistance at 19,940-20,025, while it may seek support at 19,635-19,540.

The moved in a range of 125 points. From a low of 5,897, it rallied past the 6,000-mark after almost two years, touching a high of 6,021. It finally settled at 6,016, a gain of 108 points.

According to the daily charts, the Nifty rallied once it got a positive breakout above 5,940. The bias is likely to remain bullish, as long as the index sustains at above 6,006. The near-term upside target for the index is pegged at 6,050; the medium-term target is 6,150-odd levels. In case, the index trades consistently below 6,006, we could see a short-term correction; the index could slip to 5,930-odd levels. Sustained trade below 5,910-odd levels could trigger a deeper correction to 5,800-odd levels.

The momentum oscillators on the daily charts seem to be tiring out. Hence, the possibility of a correction in the near term seems high. However, on the weekly charts, the momentum oscillators continue to remain in favour of the bulls.

To conclude, 6,006 is the key pivot point in the short-term. On the upside, the index could test 6,050-odd levels, above which the next target is 6,150. On the flip side, in case, the index breaks below 6,006, we could see a short-term correction to 5,930-odd levels, with the possibility of a slide to 5,800-odd levels.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard