Positive sentiment likely to continue
For traders now, 65,850pts would be key support level, above which, it could move up till 66,500pts or 20-day SMA; On flip side, below 65,850pts, uptrend would be vulnerable and could retest 65,700-65,650 level
image for illustrative purpose
Mumbai On Monday, the benchmark indices continued positive momentum, where the 30-share benchmark index BSE Sensex was up by 232 points. Among sectors, buying was seen in Pharma, IT and Digital indices, whereas profit booking continued in PSU banks.
“Technically, after a gap-up opening, the index held the positive momentum. For the traders now, 65,850 points would be the key support level. As long as it’s trading above the same, the positive sentiment is likely to continue,” says Shrikant Chouhan of Kotak Securities.
Above which, the market could move up till 66,500 points or 20-day SMA (Simple moving average). Further, upside may also continue, which could lift the index till 66,700 points. On the flip side, below 65,850 points, uptrend would be vulnerable. Below the same, the index could retest the level of 65,700-65,650.
STOCK PICKS
INDIGO: Buy, CMP Rs2,543, Target Rs2,670, SL Rs2,490.
The stock witnessed price correction from the higher levels and eventually, it has found support near its short-term moving average. The formation hints at a fresh leg of upward momentum to resume from the current levels.
HCLTECH: Buy, CMP Rs1,151, Target Rs1,210, SL Rs1,125.
A breakout of the Symmetrical triangle chart pattern with decent volume activity is seen on the daily charts, which indicate the start of a new bullish up move in the near term.LT: Buy, CMP Rs2,638.10, Target Rs2,770, SL Rs2,585.
On the weekly scale, the counter is forming a higher low series pattern continuously, the rising trend suggest bullish continuation formation to continue from the current levels. (Source: Kotak Securities)
