Profit booking at higher levels likely
For traders now, the 74,475 would act as a key support level, above which market could reach till 75,290-75,500; Below 74,475 points, the uptrend would be vulnerable and traders may prefer to exit
image for illustrative purpose
Mumbai: With the poll-related uncertainty now almost over and the NDA party ready to form the government, the mood remained upbeat for the second straight session as BSE Sensex crossed the psychological 75k mark on the back of a splendid all-round buying support.
“With the buoyancy returning to the market, the fear gauge volatility index also eased considerably and fell 11 per cent all eyes will now be on the Union Budget next month and the RBI’s commentary on interest rate to be announced in its credit policy on Friday,” says Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.
The benchmark indices continued positive momentum second day in a row, Sensex was up by 692 points. Among sectors, Reality index was the top gainer, rallied 4.69 percent whereas selective Healthcare and FMCG stocks witnessed intraday profit booking at higher levels.
Technically, after a gap-up opening entire day the market hovered between 74,475-75,290 levels. However, on intraday charts the market is still holding uptrend continuation formation, which is broadly positive.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, the index has completed one leg of pullback rally and we could see some profit booking at higher levels. For the day traders now, the 74,475 would act as a key support level. As long as the market is trading above the same, the positive sentiment is likely to continue.” On the higher side, the index could find the resistance at 75,290-75,500. On the other side, below 74,475 uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.
STOCK PICKS
Canara Bank
Trade: Buy/ CMP: 118 / SL: 114 / Target: 127 and 130
The stock has given a good breakout and a confirmation closing above its anchor VWAP resistance manage a bullish candlestick being formed above the same. A strict stop loss should be kept at 114 and we can see targets of 130 and above coming in.
Just Dial
Trade: Buy/CMP: 957.50 / SL : 930 / Target: 1,050
The stock has given a good breakout above its anchor WAP resistance of 950 and successfully managed to give a close above the same. With the overall trend being positive, we recommend a buy on just dial at CMP with SL 930 for Target 1,050.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
