Here’s a rundown of today’s stock market and what you should look for tomorrow.
The Indian benchmark indices finished a rough day of trade significantly down, bringing a five-day uptrend to an end.
Furthermore, bulls could not sustain the Index above 16,850, resulting in a sharp drop in the latter part of the trading session.
However, the Index did produce a slight rebound at the conclusion, closing above the 16,650 level.
Now, a prolonged trade above the 16,700–16,750 zone would send the Index back to the 16,900–17,000 zone, which is also the simple 200-day moving average and the 61.8 per cent Fibonacci retracement level.
On the other hand, failure to trade over the 16,750 resistance level may extend the declines, driving the Nifty down to levels of 16,550–16,460.
The RSI technical indicator, which is presently trading above the 40-level, indicates that there is still a possibility for more significant gains in the coming sessions.
Our stock market foresight for Wednesday:
Ultratech Cement
Buy@CMP Rs 6,021
Target: Rs 6,350
Stop Loss: Rs 5,900
Burger Paints
Buy@CMP Rs 695
Target: Rs 724
Stop Loss: Rs 680
The stock has resumed its ascent after finding support and making a brief bottom near the 50% Fibonacci retracement level. Furthermore, a prolonged trade above Rs 705 will push it to Rs 724. The RSI also indicates an upward trend.
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