73,500 would act as a crucial support level
Last week, the benchmark indices witnessed a sharp correction, with the Sensex dropped over 1450 points. Sectorally, almost all major sectoral indices registered profit booking at higher levels, but the IT, Oil and Gas indices corrected sharply
image for illustrative purpose
Mumbai, June 3: Last week, the benchmark indices witnessed a sharp correction, with the Sensex dropped over 1450 points. Sectorally, almost all major sectoral indices registered profit booking at higher levels, but the IT, Oil and Gas indices corrected sharply.
The IT index declined 4 per cent and Oil & Gas 3.78 per cent. During the week, the market registered a new all-time high of 76009.68 but corrected sharply due to profit booking at higher levels.
Technically, the index on the weekly chart has formed a long bearish candle which indicates temporary weakness. However, the medium-term to long-term structure of the market is still on the positive side.
“For positional traders currently, the 50-day SMA (Simple Moving Average) or 73,500 would act as a crucial support level. If it trades above the same level, it may bounce back to 75100-76000,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the other hand, the uptrend below 73,500 would be weak. Above 76,100 it could move towards 76,850 and in the best-case scenario 78,400.
Dalal Street is poised for a strong start to June, with driven by optimistic exit poll results predicting a significant win for the BJP-led NDA. Key catalysts include India’s GDP exceeding estimates at 8.2% for FY24, a surge in Dow Jones by 574 points, increased odds of a September rate cut, early monsoon advancement, and a 10% rise in GST collections to Rs 1.73 lakh crore in May.
“With both FIIs and DIIs being net buyers, with targets of 23,111 and 50,000+ respectively. Bullish stocks to watch include ADANI PORTS, SUZLON, JUPITER WAGON, GMR INFRA, and HDFC AMC. Suzlon (CMP 47) is recommended for accumulation with long-term targets at 53/59 and an aggressive target of 75,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
