Market holds the positive momentum
For the traders now 73,900 would act as a key support level, above which it could rally till 74500-74600. On the flip side below 73,900, we could see intraday correction till 73600-73500
image for illustrative purpose
Mumbai: On Wednesday, the benchmark indices witnessed positive momentum activity, the Sensex was up by 267 points. Among Sectors, FMCG and Reality indices outperformed both the indices rallied over 1 percent whereas intraday profit booking were seen in Metal and Selective banking stocks. Technically, after a muted opening market held the positive momentum throughout the day. Higher bottom formation on intraday charts and positive consolidation on daily charts suggesting strong possibility of further uptrend from the current levels.
Shrikant Chouhan, Head – Equity Research Kotak Securities, said: “For the trend following traders now 73,900 would act as a key support level above the same, it could rally till 74500-74600.” On the flip side below 73,900, uptrend would be vulnerable. Below 73,900 we could see one quick intraday correction till 73600-73500.
Despite weak global cues, markets moved in a range and were positive for most part of the trading session aided by selective buying in IT, FMCG and realty stocks. “The mood is currently of utmost caution, as investors don’t want to risk taking major exposure to equity assets with a couple of weeks left for the poll outcome,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
STOCK PICKS
Tata Consumer
Buy | CMP: 1120.35 | SL: 1100.00 | TARGET: 1180.00
The stock has given a good breakout above its trendline resistance mark of 1115.00 and successfully closed above it. With the stock forming a good base near 1056.00 levels and returning to higher levels, and with the RSI witnessing a minor uptick on charts, rising and touching the 54 mark, the momentum looks strong. The stock should eventually head towards potential targets of 1180.00 and above. A strict stop loss should be set at the 1100.00 mark to manage risk well.
Lupin
Buy | CMP: 1715.80 | SL: 1689.00 | TARGET: 1847.00
The stock has given a strong breakout from its box consolidation pattern and successfully closed above it. With the RSI (14) crossing the 62 mark and picking up momentum, it is expected that the stock will eventually head towards potential targets of 1825 and 1850 in a momentum rally. Volumes in Wednesday’s session were nearly twice its average (30-day) volume, which also indicates good strength in the stock.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
