Mkts positive as Sensex trading above 50-day SMA
72,415 would act as a trend decider level, above the same the bullish texture is likely to continue and below 72,415, traders may prefer to exit out from long positions
image for illustrative purpose
Mumbai: On the backdrop of strong global cues, the benchmark indices bounced back sharply. The Sensex was up by 540 points. Among sectors, all the major sectoral indices were traded in the positive territory. Technically, after a gap-up opening, the market hovered between 72,415-72,880 ranges.
The important thing is, currently Sensex comfortably trading above 50day SMA (Simple Moving Averages) which is largely positive. “For the bulls now, 72,415 would act as a trend decider level, above the same the bullish texture is likely to continue,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the higher side, short-term resistance lies at 73,000-73,200. However, below 72,415 traders may prefer to exit out from the trading long positions. Below the same, the market could retest the level of 72,100-72,000.
While Thursday’s recovery was broad-based and most sectors notched up significant gains, buoyancy in small and mid-cap indices after the recent thrashing goes to show that investors are still willing to put in money after a healthy correction.
Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Markets witnessed a relief rally on the back of firm global cues after the US Fed’s comments indicated that interest rate cut could happen towards the later part of the current year on hopes inflation worries would subside going ahead. After the Swiss National Bank cut rates by a quarter percentage point, investors are hoping that sooner or later the US Fed could follow suit and pave the way for other central banks to do so.”
Stock Picks
GMR Airports Infrastructure
CMP: 79.10 | SL: 76.50 | Target: 84 and 86
The stock has broken out above its recent four-day consolidation phase and given a good pick-up in volume towards closing. Overall momentum looks positive, and the stock should eventually head higher towards 84 and 86 levels as the strength continues. However, a strict stop-loss should also be kept at the 76.50 mark to manage risk and volatility.
National Aluminium Company Limited
CMP: 145.75 | SL: 141.50 | Target: 152.00
The stock has given a good breakout from its recent four-day consolidation period. A good pickup in volumes is a positive signal for the stock, and it appears that it should head higher towards 150 and 152 as the spree of momentum rally continues to extend its strength and upmove. The volume in Thursday’s session was almost equivalent to the average 30 days traded volume on the counter.
(Source_Riyank Arora Technical
Analyst at Mehta Equities)
