Sensex forms bullish candle
55,400 would act as a key support level, above which it could move up to 56,000-56,200; strong possibility of quick short term correction is not ruled out, if it trades below 55,400
image for illustrative purpose
Mumbai: Bulls continued positive momentum for five days in a row, BSE Sensex was up by 284 points. Among sectors, except pharma all the major sectoral indices were traded in the green. PSU Banks index was the top gainer, rallied over 1.5 per cent.
Technically, on daily chart, the index has formed bullish candle and it succeed to close above 100 day SMA (Simple Moving Average) which is broadly positive.
"For the traders now, the 55,400 would act as a key support level.
Above which the index could move up to 56,000-56,200," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, strong possibility of quick short-term correction is not ruled out, if the index succeeds to trade below 55,400. Below which, it could slip till 55,200-55,100.
Stock Picks
GodrejCP: FMCG stocks are performing better than markets in recent times and so is the stock ready for an up move. Stock is taking support at 5-10 day SMA AND can so be bought for Target of Rs940 SL Rs854 for 4-5 sessions.
Reliance: Stock is resisting near 200--Day SMA at Rs2512 and also option writing is seen at Rs2500 CE. Stock seems to play a small profit booking with SL at Rs2,526 and Target on downside at Rs2,320.
(Source: Kush Ghodasara)
