Sensex inching closer to touch 50,000-mark in near-term
The Sensex index has closed above the peak point of the indecisive candlestick formation, suggesting further upside
image for illustrative purpose
Mumbai: The Sensex index has closed above the peak point of the indecisive candlestick formation, suggesting further upside. Sectoral rotational activity clearly shows that the broader market trend is still very strong. In the short-term, the trend would remain uncertain due to concerns over rising crude and dollar index prices, but traders should try to find buying opportunities in the market until a negative reversal appears on the daily chart. On Wednesday, the Sensex would take hold at the level of 49,800 or at 50,000.
"The bullish reversal formation of Reliance Industries would help the Sensex to reach the milestone of 50,000 in the near term," says Shrikant Chouhan, EVP (equity technical research) at Kotak Securities. Markets opened on a weaker note on rising dollar index and the US bond yields, which are negatives from emerging market perspective. However, FII inflows continue to be robust, pushing markets higher. Meanwhile, the RBI's report about high potential NPAs of the banking system might put likely strain on PSU banks and leading for private sector banks to capitalize from the opportunity.
"We can expect the markets to remain positive in coming days with the massive vaccine rollout in India. However, there are concerns over rising coronavirus cases globally," said Ashis Biswas, head of technical research at CapitalVia.
Top 5 Gainers
♣ SBIN (+3.65 %), BHARTIARTL(+3.41 %), RELIANCE (+3.14 %), HDFCBANK (+2.05 %) and ITC (+1.95 %)
Stock Picks
♣ SUNTV_Above 533.5 with a target of 545 and Stop loss of 524.85. It has formed a Head & Shoulder formation.
♣ BHARAT FOR_Above 625 with a target of 639.75 and Stop loss of 616.85. It has formed a Head & Shoulder formation.
♣ MGL above 1147_With a target of 1189 and Stop loss of 1122.85. It has a Flag pattern formation.
♣ BRITANNIA above 3650_With a target of 3734 and Stop loss of 3584. It is Forming a broadening wedge.
♣ BOMBAY DYING above 83.50_With a target of 89.85 and Stop loss of 79.85. It is on the verge of resistance breakout. (Source-CapitalVia)
