Optimism Prevails On Market
Benchmark indices continued their positive momentum last week, Sensex hitting a new all-time high of 74501. The media and metal sectors outperformed with the media index up 6.70% and the metal index up 5.30%. However, some profit-booking was seen in FMCG shares at higher levels
image for illustrative purpose
Mumbai, Apr 8: Benchmark indices continued their positive momentum last week, Sensex hitting a new all-time high of 74501. The media and metal sectors outperformed with the media index up 6.70% and the metal index up 5.30%. However, some profit-booking was seen in FMCG shares at higher levels.
“The market remains bullish and is currently trading above the 20-day SMA (Simple Moving Average) which is a positive signal. Traders should note that 73300 could be an important support level in our view,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.
The positive momentum is likely to continue up to 74650. But if it manages to hold above 73300, the market could rally towards 75500-75300.
Trend traders should keep an eye on 47700 as the key support zone, while 48700 could be an important resistance zone.
“Optimism prevails on Dalal Street as investors prioritize the anticipation of strong Q4 corporate profits in India over the Fed's rate-cut plans. TCS's upcoming Q4 earning season kickoff on April 12th is pivotal,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Geopolitical tensions push oil prices to $87 a barrel, while inflation takes the spotlight with the March US CPI release.Supported by a Put-Call Open Interest Ratio of 1.17. FIIs bought Rs. 1659 crores, contrasting DIIs' sales of Rs. 3370 crores.
India VIX recedes to 11.22 levels, signalling reduced volatility. Recommended trades include buying EICHER MOTORS (CMP 4031) presenting a compelling buy opportunity with a stop at 3823 and targets at 4101/4201, driven by momentum play.
Bullish sentiment persists on stocks like EICHER MOTORS, CANARA BANK, IPCA LAB, and M&M, encouraging buying on corrective declines.
