Charts indicate breakout continuation
Market is largely positive; For now, 81,000 would act as a sacrosanct support zone, above which market could rise till 81,600-81,800; On the flip side, below 81,000 it could retest the level of 80,400-80,300
image for illustrative purpose
Mumbai: The benchmark indices continued positive momentum as BSE Sensex was up by 627 points. Among sectors, IT index outperformed rallied over 2.20 per cent whereas Media index corrected sharply shed 3.5 per cent.
Technically, after a weak open market successfully surpassed the short-term resistance of 81,000 and post breakout it intensified positive momentum. On daily charts it has formed bullish candle on intraday charts it is holding breakout continuation formation which is largely positive.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “For the trend following traders now, 81,000 would act as a sacrosanct support zone.Above 24700/81000, the market could continue the positive momentum 81,600-81,800. On the flip side, below 81,000 traders may prefer to exit out from the trading long positions.” Below which it could retest the level of 80,400-80,300.
Prashanth Tapse, Senior VP (Research), Mehta Equities, said: “Markets rebounded sharply from its lacklustre trades seen over past few sessions as buying in the beaten down IT stocks and select banking stocks pushed both Sensex & Nifty to new highs. Markets cheered the better-than-expected Q1 results of Infosys, which fuelled a rally in the IT pack. With a couple of trading sessions left before the budget announcement, investors have placed bets on stocks that had underperformed in the recent upsurge. Nifty’s 200 DMA is placed at 21732 mark which is comfortably scaling higher since many sessions from the past.”
Vaibhav Vidwani, Research Analyst at Bonanza Portfolio, said that Nifty and Sensex closed on positive note. Ahead of the Budget release, investors continued to trade cautiously, and negative signals from Europe and Asia further soured the mood. Globally, the dovish comment from the FED chief on inflation trajectory and a drop in US 10-year yield ahead of US retail sales data increased the likelihood of a rate cut in September which is supporting optimism in the market.
STOCK PICKS
SHRIRAM FINANCE | CMP: 2866.00 | SL: 2800.00 | TARGET: 2950.00
The stock has demonstrated a strong breakout above its swing high resistance mark and witnessing a re-test to its anchor VWAP support zone. With the price breaking out above its resistance levels and volumes rising significantly, we can see targets of 2950.00 and above with a set stoploss at the 2800.00 mark.
YES BANK | CMP: 25.75 | SL: 24.75 | TARGET: 27.50
Yes Bank has shown a notable breakout above its swing high resistance mark of 25.00 and has successfully closed above it. With the recent swing low being around 24.75, this level should serve as a strict stoploss for the stock. The recent pick up in volumes is showing high momentum conditions. Potential upside targets are 27.50 and above.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
