Daily mean reversion setups emerge on BSE 500: Emkay

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Techcheck Daily

Daily mean reversion setups emerge on BSE 500

n     Chart of the Day: BSE 500; mean reversion setups emerge, ‘Inside Day’ formation on lower bands, expect pullback till 8070-8100, similar patterns also visible on many sector indices, expect next few sessions to be sideways to up

n     Nifty trading near 52 week trendline supports @5790, we expect the trendline to hold though whipsawing can already be witnessed, the bounce would now be tempered

n     Bank Nifty forms an exhaustion day, followed by ‘inside day’, expect pullbacks till 12300-12500

n     Nifty monthly mean reversion setups emerge target 5030, medium term targets hence stand revised from 6340-6500 to 6100-6450

n     Bearish alternates; Sensex two year cycles and quarterly cycles come back to haunt

n     Stocks with positive short term view:

n     Reliance, ICICI Bank, SBI, L&T, Infosys, Alok Text, Arvind Ltd

n     Stocks with negative short term view:

n     Tisco, Hindalco