Dalal Street continues to slide; Sensex down 398 points

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Dalal Street continues to slide; Sensex down 398 points

Dalal Street extended its weakness for the second straight session to settle on Friday with cuts due to non-conducive global cues. The BSE Sensex plunged 398.18 points, or 0.69 per cent, to 57,527, down 398.18 points. The Nifty was down 132 points, or 0.77 per cent, to 16,945. 05 for the week.

On traders' radars were a number of stocks such as Hindalco Industries, Dr Reddy's Laboratories and Bajaj Finserv. Mileen Vasudeo, Sr Technical Analyst, Arihant Capital Markets said on these stocks ahead of Monday's trading session:

Bajaj Finserv is maintaining a lower top-lower bottom formation. The momentum indicator viz MACD is negatively poised and the stock has poor relative strength. The momentum on the downside is likely to continue. One can sell the stock at current levels with a stop loss of Rs 1,310, for a target of Rs 1,100 -- 1,050 levels in the next couple of weeks.

Dr Reddy's Labs has been trading sideways for the last four weeks in the range of Rs 4,409 on the lower side and Rs 4,499 on the higher side. The stock is well ahead of the benchmark indices, as it has higher relative strength. The RSI has a momentum indicator that is positively poised. In the next couple of weeks, one can buy at current levels with a stop loss of Rs 4,380.

Hindalco is showing poor relative strength and maintaining lower top and lower bottom formation. The momentum indicator is negatively poised, this indicates that momentum on the downside is likely to continue. It is possible to sell at the current price with a stop loss of Rs 403 for a target of Rs 358 and Rs 329 levels in the next couple of weeks.