Positive momentum likely in mkts
73,100 would act as a key support zone; So long as the index trades above the same, the pullback formation is likely to continue. Below 73,100, we could see quick correction till 72,800-72,600
image for illustrative purpose
Mumbai: On Monday, the benchmark indices continued the positive momentum. Sensex was up by 560 points. Almost all major sectoral indices traded in positive territory with PSU Banks gaining the most by over 3 per cent.
Technically, after a gap opening, the market held the positive momentum throughout the day, which is largely positive. “For the traders now, 50 day SMA (Simple Moving Average) or 73,100 would act as a key support zone. So long as the index trades above the same, the pullback formation is likely to continue,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the higher side, index could find the resistance at 73,900-74,100. However, below 73,100, the sentiment could change. Below which we could see one quick correction till 72,800-72,600.
Prashanth Tapse, Senior VP (Research), Mehta Equities, said, “The buoyancy in equity markets continued due to strong global cues as buying was seen across the board on the back of risk-on sentiment.”
Although geo-political tension in West Asia last week plundered global assets, absence of any fresh eruption of conflict between Israel and Iran also soothed the market sentiment, triggering massive buying for the second straight session. The sharp fall in crude oil prices, currency and gold also boosted the sentiment.
STOCK PICKS
RailTel
CMP: 379.00 |Stop-Loss: 360.00 |Target: 420.00
The stock has given a good breakout above its anchor vwap resistance mark of 375 and successfully managed to close above the same. With the price giving a good closing above its trendline and the stock looking poised for a good upside move, Railtel looks a promising buy with a set stoploss at 360 mark for potential targets of 420 and above.
Electrosteel Castings
CMP: 201.50 |Stoploss: 190.00 |Target: 225.00
The stock has given a good breakout and confirmation closing above its resistance mark of 200 on its daily charts in Monday’s trading session. With the price making higher highs and volumes witnessing a pick up surge, the stock looks poised for a rally towards potential targets of 225 and above. A strict stoploss should be set at 190 mark for all active longs on the stock.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
