Above 8,786, The Next Target Levels Are 9,150 & 9,250, Says Vishwas Agarwal
After rallying for three successive days, the Sensex, on Tuesday (Mar 17), ended the day on a negative note followed by banking, IT and oil & gas stocks.
Among the BSE Sectoral indices BSE IT index remained the top loser, the index declined 2%. Among the other major losers were BSE Bankex index (down 1.6%), BSE Oil & Gas index (down 1.3%) and BSE Teck index (down 1.2%).
After opening at 8,942.01, down 1.53 points, BSE Sensex remained lackluster all through the day. It also hit a high of 9,024.12.
Continued selling pressure witnessed across select front line stocks dragged the Sensex below 9,000 level to finally close on a negative note.
BSE Midcap index fell 0.16%, whereas Smallcap index declined 0.39%.
On global front, Asian stocks surged, as Australia declared that it may cut interest rates and Standard Chartered reported a strong start to 2009. Japanese benchmark index Nikkei gained 244.98 points at 7,949.13 and Hong Kong`s Hang Seng index dropped 98.62 points at 12,878.09 and Singapore`s Straits Times lost 27.61 points at 1,558.71.
UK`s benchmark index FTSE 100 dell 14.74 points at 3,849.25.French benchmark index CAC 40 fell 11.96 points at 2,779.70 and Germany`s benchmark index DAX dropped 7.11 points at 4,037.43. (4.08 p.m., IST).
The Sensex ended with a loss of 79.72 points at 8,863.82 after hitting an intra-day low of 8,801.79. The broad-based NSE Nifty lost 19.80 points at 2,757.45 after hitting an intraday high of 2,805.60 and an intraday low of 2,738.70.
Among the 30-components of Sensex, 20 stocks ended in negative terrain and only 10 stocks ended in the green. TCS, JP Associates, SBI, Ranbaxy, Reliance Industries, Infosys and ACC were among the major losers. Tata Motors, Hindalco, Maruti, ITC and NTPC were among the major gainers.
Stock market analyst Vishwas Agarwal said that BSE 8,786 is the basic support for the current rally.
Below this target, the stock market will again be in risky zone, he said.
Mr. Agarwal added, “Above 8,786 level, 9,150 and 9,250 are the next maximum target levels. Reliance Industries, SBI, ICICI bank and Reliance Capital will lead the trend either side of market.”
“Overall first target in this rally is completed in many index based stocks, but still market may rise till March 20 and from March.23 onwards may go down again upto the 8,500 and 8,250 levels.”
Agarwal further advised, “High levels will be difficult to sustain as profit booking will take place. Buy in dips only and keep profit booking on rise in the market which may come due to short covering.”