Short-term mkt trend still looks positive
73,100 would be the trend decider level. As long as market is trading above the same, the bullish formation is intact, below which the texture could change and the index could slip till 73,600-72,400
image for illustrative purpose
Mumbai: On Monday, the benchmark indices witnessed a range-bound activity. BSE Sensex was up by 363 points. Among sectors, almost all the major sectoral indices were traded in to the positive territory, but Reality, Media indices outperformed, gained over four per cent.
Technically, after a strong opening, the market witnessed intraday profit booking at higher levels. However, the short-term market trend is still in to the positive bias.
“We are of the view that, the larger market texture is bullish, but fresh uptrend rally possible only after dismissal of 74,250 points,” says Shrikant Chouhan, head (equity research), Kotak Securities.
Above the same, the market could rally till 74,500-74,800. On the flip side, below 73,900 we could see a one quick intraday correction till 73,600-73,400. Contra traders can take a long bet near 73,400 with strict 150 points stop loss.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Markets were in an upbeat mood after a prolonged holiday session last week as both Sensex & Nifty propelled to fresh highs on improving appetite for equity assets despite hiccups at regular intervals.”
Although there are challenges related to delayed rate cuts and uncertainty surrounding geo-political tensions, India’s strong reform path and expectations that the ruling party could come back to power in the upcoming general elections has been prompting investors to take bullish bets.
Stock Picks
DLF
CMP: 948.25 | Stoploss: 930 | Target: 1,000
The stock has given a good breakout above its recent swing high resistance mark of 941.90 on its daily timeframe charts. With the stock making higher highs and higher lows and giving strong signs of momentum and strength, we expect the stock to head higher towards potential targets of 1,000 and above in the next few weeks
BSE Ltd.
CMP: 2709.90 | Stoploss: 2625 | Target: 2850
The stock has given a good breakout above its all-time high resistance mark of 2,595.00 on its daily timeframe charts. The overall structure is looking positive for the next few weeks as major support is placed at the 2,630 mark. A strict stop-loss should be kept at the 2,625 mark for potential upside targets of 2,850 and above
(Source_Riyank Arora Technical Analyst at Mehta Equities)
