Mkts enter promising reversal formation
The benchmark indices bounced back sharply, after a strong intraday rally BSE Sensex was up by 449 points. Among sectors, all the major sectoral indices were traded in the green, but Metal index outperformed rallied over four per cent.
image for illustrative purpose
Mumbai: The benchmark indices bounced back sharply, after a strong intraday rally BSE Sensex was up by 449 points. Among sectors, all the major sectoral indices were traded in the green, but Metal index outperformed rallied over four per cent.
“Technically, after a long correction, the market bounced back sharply. Today, after a gap-up opening, the index held the positive momentum throughout the day which is largely positive,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
A promising reversal formation and strong bullish candle indicating further uptrend in the near future. For the traders, now the 59,100 would act as a sacrosanct support zone.
Above which the positive momentum is likely to continue till 59,700-59,900. On the other side, below 59,100 uptrend would be vulnerable. Below which, traders may prefer to exit out from the trading long positions.
- Axis Bank: It’s witnessing a recovery with volumes. Break above Rs860 on closing basis could take prices towards Rs900 or higher levels as long as Rs840 is intact on downside. RSI has a head room space for the prices to move upside.
- HAL: Hindustan Aeronautics Ltd is finishing the day with a bullish Marubozu candle, which means the stock has witnessed buying with huge volumes. Bollinger bands have expanded and opened on the upside hinting prices to capture the movement in the north direction towards
- Rs2,800 level as long as Rs2,550 on the downside will act as a stop loss.
(Source- Ravi Gangan, technical trader at Mehta Equities)
