Buy on dips with a stop loss at 49,300
On Thursday market closed with a very strong breadth. At least five stocks came out positive in the face of negative endings.
image for illustrative purpose
Mumbai, Apr 01 On Thursday market closed with a very strong breadth. At least five stocks came out positive in the face of negative endings.
On a daily basis, the Sensex closed above the 20-day average and so the Sensex can now challenge the peak of 51,800. As per candlestick formation, the market has formed a bullish continuation formation that might send the market to minimum of 51,200 levels. Also, on a weekly basis, the level of 50,050 has been broken, indicating a rally.
The next level would be considered a significant support area. A positive move in global markets, a drop in bond yields and a slight easing in the dollar index could help the Sensex to move beyond the significant levels. Below 49,300, Nifty would retest the levels of 48,700 or 48,200.
"It was a truncated week for the market and FIIs turned net sellers to the tune of 900 crores, however, domestic institutions infused more than 4,000 crores in the cash market. The strategy should be to buy on dips with a stop loss at 49,300. The focus should be on commodities, Banks and Pharma companies,"says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
| 5 Top gainers: |
| INDUSIND BANK (+4.09%) |
| KOTAK MAHINDRA (+2.79%) |
| ICICI BANK (+2.26%) |
| BAJAJ FINANCE (+2.24%) |
| ULTRATECH CEMENT (+2.14%) |
| Stock Picks |
| 1. AARTIIND_Above 1375 with a target of 1415 and Stop loss of 1355. It is trading in a sideways channel and has recently breached an important resistance level. |
| 2. BPCL_Above 440 with a target of 447 and Stop loss of 433. It has a support of 8 and 40 DMA. |
| 3. ACC above 1925 with a target of 1960 and Stop loss of 1895. It is an upward trending channel and on the verge of a breakout. |
| 4. DMART_Above 2925 with a target of 2955 and Stop loss of 2895. It has a support of 8 EMA. |
| 5. BHARATFORGE_Above 616 with a target of 628 and Stop loss of 608. It has reversed from the support of 8 AND 40 EMA. |
(Source-CapitalVia)
