Selling pressures apart, Sensex may open green

Mumbai: Indian benchmark equity indices witnessed yet another day of bounce amid buying in IT, Realty, FMCG and Pharma sectors and also PSU banks remained investors' delight. Market breath remained positive. All the sectoral Indices closed in Green. Sensex gained momentum in the latter half. "Sensex should open in green. However, likely to witness some selling pressure at higher levels as technically the pullback rally should end around 46,700 levels," says Nilesh Karani, VP, Magnum.

For Sensex to regain uptrend should sustain above 46,550 levels for northward target of 46,670-700 mark and if Sensex sustains above 46,740 levels, the upward journey will continue until 46,850-890 levels. On the flipside, Sensex would see immediate support near 46,200-250 levels, sustaining below 46,170 levels can witness selling with support near 46K levels and next level below 46K to watch for support is 45,770-800 mark. Market may remain sideways as long weekend ahead. "Markets are still expensive with high volatility," says Ashis Biswas, head of technical research at CapitalVia.

Stock Picks

♦ DMART above 2680 with a target of 2740 and Stop loss of 2650. It is trading in an upward trending channel and has reversed from its support.

♦ HDFC Life_Above 654 with a target of 670 and Stop loss of 640. It has a support of 8 and 40 DMA.

♦ Cipla above 830 with a target of 840 and Stop loss of 820. It has formed a support of 21 and 55 DMA.

♦ LTTS_Above 2350 with a target of 2400 and Stop loss of 2300. It has a consolidation at the level of 2350 and breakout above the level can give good returns.

♦ Hindustan Unilever_Above 2380 with a target of 2420 and Stop loss of 2348. It has formed a support of 21 DMA and has reversed from the same.

(Source-CapitalVia)