Further Upside Possible
For the bulls now, 84,600-84,500 would act as a key support zones while 85300-85500 would be the key profit booking areas for the day traders. However, below 84,500 level, uptrend would be vulnerable
Mumbai: On Wednesday, the benchmark indices witnessed buying interest at lower levels, NSE Nifty ended 64 points higher, while BSE Sensex was up by 256 points. Among sectors, Media index outperformed rallied over three per cent whereas intraday profit booking were seen in IT and consumer stocks. Technically, after an intraday correction the market took the support near 84,750 and bounced back sharply. From the day lowest levels market rallied nearly 500 points.
Higher bottom formation on intraday charts and uptrend continuation texture on daily charts indicating further upside from the current levels. For the trend following traders now, the 84,750 would act as a sacrosanct support level.
“Above the same, the market could rally till 85,500-85,700. On the other side, below 84,750 sentiment could change,” says Shrikant Chouhan, head (equity research), Kotak Securities. Below the same, the market could retest the level of 84,500-84,300.
For the bulls now, the 84,600-84,500 would act as a key support zones, while 26,050-26,100/85,300-85,500 would be the key profit booking areas for the day traders. However, below 25,800/84,500 uptrend would be vulnerable.
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Markets were extremely range-bound for most of the trades, but winding up of short positions ahead of monthly expiry on Thursday triggered a small rally towards the end which saw both benchmark indices, Sensex & Nifty, closing above their psychological levels of 85,000 and 26,000 respectively. However, broader market weakness due to profit-taking could be a signal that the current rally may face intermittent hurdles due to global uncertainty and rising Middle East conflict.”
STOCK PICKS
NTPC Analysis | BUY-CMP: Rs436.75| SL: Rs430| TARGET: Rs450
Currently NTPC is showing positive momentum, trading with strong support the stock presents an attractive buy opportunityin the near term. Risk management is essential with ensuring limited downside risk.
Tata Communications | BUY-CMP: Rs2,133| SL: Rs2,100| TARGET: Rs2,200
Tata Communications is positioned well with potential to reach the target. The stock has immediate support at Rs2,100, making it a favorable buy for short-term gains. A stop loss at helps in safeguarding against any market volatility.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs