Sensex may breach 45.5k mark this week

• M&M- above 756.50 with a Target (TGT) of 765 and Stoploss (SL) of 749. It has a support of 21 and 55 MA.
• GRASIM- above 943 with a TGT of 955 and SL of 933. It has a support of upward trending line and has reversed from the same.
• PVR- above 1360 with a TGT of 1380 and SL of 1340. It has formed an ascending triangle.
• MCDOWELL-above 590 with a target of 600 and SL of 580. It is in an upward moving channel.
• HDFC LIFE- above 655 with a TGT of 663 and SL of 647. It has forming an inverse head and shoulder in the short term and could give a breakout above given levels.

Mumbai: Markets are all set to scale new heights and if all goes well, it may cross the mark of 45,000 in the week ahead.

Indian equities scaled new record high on Friday, Sensex closed above 45K mark, after RBI revises GDP forecast to -7.5 per cent from previous forecast of -9.5 per cent. RBI kept interest rates unchanged due to high inflation. Banking sector outperformed, also FMGC & Pharma added fuel to rally. Aviation stocks also high after cap on domestic flights' capacity raised to 80%. FPIs net buyer in the Market.

However, Sensex after consolidation of 2 days finally broke on Upper-side, showing further room upside. "Markets may further rise and see new high in current week," says Nilesh Karani, VP, Magnum. Sensex to witness, he said, rally with target on upside near 45,500 levels, with resistance near 45,270-320 levels, Rally could further gain momentum if Sensex sustains above 45,500 levels for target of 45,700 levels.

On the flipside, Sensex would see immediate support near 44,800-840 levels & next 44,690-740 levels, If Sensex sustains below 44,640 mark would witness selling with immediate support near 44,500-530 levels & next 44,200-44,250 levels. RBI's supportive policy has already given the boost to the market sentiments. Amongst the sectors, PSU banks were the best performers. Pharma, Infra and FMCG also underpinned the upward rally. "We believe that the possible Rupee appreciation could act as a supportive measure to further strengthen the market uptrend," Ashis Biswas, Head of Technical Research, CapitalVia said.

Kumud Das