Sensex takes support near 50 & 20-day SMA

Mumbai On Monday, the benchmark indices continued positive momentum as NSE Nifty ended 94 points higher, while BSE Sensex was up by 241 points. Among sectors, almost all the major sectoral indices were traded in the positive territory, but PSU Banks, Metal and IT indices outperformed, rallied over two per cent. Technically, after early morning intraday correction, the Sensex took the support near 50 and 20 day SMA (Simple Moving Average) and bounced back sharply. For the day traders now, the 65,300 points or 50-day SMA would act as a sacrosanct support level, above which the index could move up till 65,900-66,000 points. On the flip side, below 65300 uptrend would be vulnerable.

“However, after the correction the stock has rebounded and closed above its short-term moving average indicating further bullish momentum,” says Shrikant Chouhan of Kotak Securities.

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L&TFH: Buy, CMP Rs129.7, Target Rs137, SL Rs126

The stock is into a rising channel forming a higher top and higher bottom series. Moreover, recent formation of a strong bullish candlestick pattern indicates an uptrend to continue in the near term.

EICHERMOT: Buy, CMP Rs3,426, Target Rs3,600, SL Rs3,350

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On the daily charts, the stock had witnessed price correction from the higher levels.

(Source- Kotak Securities).