RIL, SBI: These five stocks may lead the Sensex, Nifty rebound, charts show

Only a decisive close below 47,000 may accelerate selling pressure on the S&P BSE Sensex, charts show

After a stupendous rally over the past three months, stretched valuations worried investors at Dalal Street, and nudged them to book profit. The markets were trading lower for the fifth straight day on Thursday, having erased all the gains logged in calendar year 2021.

The benchmark S&P BSE Sensex, that reached the historic-level of 50,000 last week, has tumbled 8.5 per cent from its record high level of 51,184 in the past five sessions. Moreover, over 50 per cent of the stocks on the BSE barometer did not exhibit any strength until a week ago.

So, has the sharp correction set stage for another rally in the markets? Here are the stocks that may lead the rebound:

S&P BSE SENSEX: The index is nearing the support of 50-days moving average (DMA) placed at 46,772 as per the daily chart. A reversal nearing this support may show a tremendous accumulation and may trigger a sharp bounce towards 50,000-mark. On the trendline scenario, only a decisive close below 47,000 may accelerate selling pressure. The overall structure indicates the index is able to uphold the reversal with the trendline support intact, as per the chart. CLICK HERE FOR THE CHART
 
NIFTY50: With the four consecutive sessions in the red, the index may see a revival near the range of 13,626 – 13,811 levels supported by 50-DMA level placed at 13,729. While the major technical indicators are showing a negative bias, stability at the current juncture may bring back the bullish sentiment. The immediate resistance falls at 14,200 levels. CLICK HERE FOR THE CHART
 
Reliance Industries Ltd (RELIANCE): The stock is trading near the support of 200-DMA placed at Rs 1,907 levels. If it manages to hold this support, then a revival towards Rs 2,050 can be expected, daily chart shows. That said, the Moving Average Convergence Divergence (MACD) has formed a negative crossover and has breached the zero line downward, suggesting weakness in the stock. This negative bias may exaggerate if it fails to uphold the 200-DMA support. The immediate support comes at Rs 1,830 levels. CLICK HERE FOR THE CHART
 
Bajaj Finserv Ltd (BAJAJFINSV): When this stock breached the support of 50-DMA last time, it failed to attract any follow-up buying. However, the recent correction in the front line index has not seen a significant negative impact on this stock.  The 50-DMA is now placed at Rs 8,865, which is acting as the immediate support. The Relative Strength Index (RSI) is trading with a positive crossover upholding the 50 value comfortably. This shows the strength may remain firm in the stock with trend heading towards Rs 9400 to Rs 9500 levels. CLICK HERE FOR THE CHART
 
Britannia Industries Limited (BRITANNIA): This FMCG stock is consolidating between the range of Rs 3,500 to Rs 3,700 levels. However, the recent weakness has not seen any breakdown, which demonstrates underlying strength in the stock. Any positive close above Rs 3,650 with aggressive volume may see a breakout towards Rs 3,900 levels. CLICK HERE FOR THE CHART
 
State Bank of India (SBIN): The stock is hovering around the 50-DMA support of Rs 271 levels. Any reversal at this level can push the stock towards Rs 300 levels, as per the daily chart. The RSI is nearing the oversold territory of 30 value. The next support comes at Rs 260 levels. CLICK HERE FOR THE CHART
 
Tata Steel Ltd (TATASTEEL):  After breaching Rs 650 levels, this stock is trading near the 50-DMA support at Rs 628 levels. The closing basis support comes at Rs 590 levels. With the MACD nearing the zero line, one can expect stability and support. Only a firm close above Rs 650 may lead to an upside towards Rs 720 levels.  CLICK HERE FOR THE CHART