59,000 would act as crucial support level
On Monday, the market opened with a gap of 378 points, but after early morning intraday rally entire day it was hovered between 59,200-59,500 price ranges.
image for illustrative purpose
Mumbai: On Monday, the market opened with a gap of 378 points, but after early morning intraday rally entire day it was hovered between 59,200-59,500 price ranges. Among sectors, strong buying was seen Metal and Media stocks whereas, witnessed intraday profit booking in select FMCG and Auto stocks. Technically, one more time the BSE Sensex took the support near 20-day SMA and reversed sharply.
On daily charts, the NSE Nifty has formed promising reversal formation, which is broadly positive. "We are of the view that, 59,000 or 20-day SMA would act as a crucial support level for the day traders. Above the same uptrend momentum is likely continue up to 59,500-59700 on the flip side, below 17600/59000 uptrend would be vulnerable," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
On the flip side beyond 59,400 the immediate hurdle would be 59,600. Further upside may also continue which could lift the index up to 59,900, he added.
Stock Picks
BALRAMCHIN: Above Rs393 with a target of Rs397 and Stop loss of Rs389. The stock is in upward trending channel and has given the breakout.
EQUITAS: Above Rs123 with a target of Rs125 and Stop loss of Rs121. It has support of 8 and 40 EMA.
BATAINDIA: Above Rs1,875 with a target of Rs1,893 and Stop loss of Rs1,857. The stock is in upward trending channel and is on the verge of a breakout.
BEL: Above 206 with a target of 208 and Stop loss of 204. It has a support of 8 EMA.
APOLLOTYRE: Above Rs228 with a target of Rs231 and Stop loss of Rs125. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
