Uptrend wave may continue
77,500 to act as a trend decider level as long as index is trading above the same market may move to 78,500-78,700 levels; Below 77,500 traders may prefer to exit out from trading long positions
Mumbai: On Tuesday, the benchmark indices registered a fresh all time high of 78,164.71 points. BSE Sensex was up by 712 points. Among sectors, Banking and Financial indices outperformed. Both the indices rallied over one per cent whereas Realty index shed nearly two per cent.
For the trend following traders now, the 77,500 would act as a trend decider level.
As long as the index is trading above the same, positive sentiment is likely to continue.On the higher side, the 78,500-78,700 would be the immediate resistance zones for the bulls. However, below 77,500 level, uptrend would be vulnerable. Below the same, trades may prefer to exit out from the trading long positions.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “Technically, after a strong opening, the market held the positive momentum throughout the day. A bullish candle on daily charts and higher bottom formation on intraday charts indicating continuation of uptrend wave in the near future.”
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “After a last few range-bound sessions, investors placed bullish bets on banking and select frontline IT stocks which helped benchmark indices scale fresh highs even as the majority of the sectors ended in red. Most of the private banking stocks had missed the upsurge seen in recent weeks. Hence, there was a flurry of activity in the financial space ahead of the monthly expiry on Thursday.”
STOCK PICKS
Bajel Projects Ltd | Buy | CMP: 304.35 | SL: 290 | TARGET: 340
The stock has given a good re-test to the breakout mark and is available at an attractive risk-to-reward ratio at current levels. It has been trading well above all its important moving averages and its anchor VWAP support level. With a strict stop-loss set at 290, the stock can be bought for potential upside targets of 340 and above.
Varroc Engineering | Buy | CMP: 670.50 | SL: 630 | TARGET: 750
The stock has given a strong breakout above its recent swing high resistance mark of 632 and has successfully managed to close above it. With the price revisiting its breakout level and witnessing a healthy consolidation, the stock looks like an attractive low-risk buy with a set stop-loss at 630 for potential upside targets of 750 and above.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs