Careful while adding long positions at high level
Another day with tremendous gains for the market
image for illustrative purpose
Mumbai: Another day with tremendous gains for the market. Markets closed higher for the day, led by auto, IT, pharmaceuticals and selected FMCG stocks. During the day, the market fell three times to 48,950 levels, but found huge support at those levels to scale higher. Today the market closed at the highest point of the day despite the weakness in US stock futures, rise in the dollar index, and crude prices are at an alarming level of $55.
It seems that the market has gained momentum due to the bright possibilities of bold announcements in the forthcoming Union Budget. Technically, the market has left an exhaustion gap between today's lows and yesterday's highs.
It is an indecisive candlestick pattern at the top of the current movement and traders should take some profit at current levels until the Sensex crosses do not cross the 49,370 level.
"Support exists at 49,000 and 48,900. One should be careful when adding long positions at high level," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
Stock Picks
♦ BPCL_Above 406 with a target of 416 and Stop loss of 399. It has formed a cup and handle formation.
♦ GLENMARK_Above 526 with a target of 534 and Stop loss of 520. It has a support of 21 and 40 DMA.
♦ APOLLOTYRE_Above 196 with a target of 202 and Stop loss of 191. It has a support of 8 and 40 DMA.
♦ SBILIFE_Above 955 with a target of 970 and Stop loss of 940. It is trading in an upward trending channel.
♦ BALRAMCHIN_Above 178.50 with a target of 183 and Stop loss of 175. It has formed a support of 55 DMA and has reversed from the same.
(Source-CapitalVia)
