Market is largely positive
Above 73,300, the market could move up till 74,500-74,800. On the flip side, below 73,300 the market could slip till 73,000
image for illustrative purpose
Mumbai: On the last day of week, the benchmark indices continued positive momentum as the Sensex was up by 279 points.
Among Sectors, PSU Bank index outperformed, gaining 3.10 per cent. Technically, during the week, the market witnessed positive consolidation at higher levels.
On daily and intraday charts, the market is holding higher, high and higher low formation and on weekly charts, the Sensex has formed breakout continuation formation, which is largely positive. For the positional traders now, 73,300 or 20 day SMA (Simple Moving Average) would act as a trend decider level.
Above 73,300, the market could move up till 74,500-74,800. On the flip side, below 73,300 the sentiment could change. Below 73,300, the market could slip till 73,000. Further down side may also continue which could drag the index till 72,650.
“For the positional traders now, 73,300 or 20day SMA (Simple Moving Average) would act as a trend decider level,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.
About Bank Nifty, the short-term texture is bullish but buying on dips and sell on rallies would be ideal strategy for the short-term traders. For Bank Nifty, 47,500-47,200 would act as a key supports zone while 48,300-48,600 could be the key resistance areas for the traders.
Stock Picks
Chambal Fertilisers & Chemicals Ltd. (Buy)
CMP: 372.75 | SL: 364.00 | Target: 390 and 400
The stock has given a breakout from its triangular consolidation pattern and looks ready for a good upside move towards 390 and 400 in a spree of momentum rally. A strict stop loss at 364 should be kept for all buys to manage risk well.
OFSS (Buy)
CMP: 8301.80 | SL: 7950 | Target: 8500 and 8750
The stock has given a good breakout above its all-time high mark of 8190 and successfully managed to close above the same. With the overall trend being positive and the stock making continuous higher highs and higher lows, it seems poised for a good upside move towards 8500 and 8750 with a set stop loss below 7950.
(Source: Riyank Arora Technical Analyst at Mehta Equities)
