Begin typing your search...

Stock Market holds positive momentum

For now, the 77,000 would be the key support level, above the same market could rally up to 77,600-77,800pts; On the other side, below 77,000 level, traders may prefer to exit out from the trading long positions

image for illustrative purpose

Stock Market holds positive momentum
X

19 Jun 2024 11:07 AM IST

Mumbai: Key benchmark indices continued their record-breaking spree as renewed FII buying interest coupled with moderating domestic inflation has raised hopes of a rate cut by this year end.

“Although monsoon has made a steady start, investors are hoping for a pick-up in rain activity over the next few weeks that would boost consumption, particularly rural areas, and prop up overall growth in the remaining quarters of this fiscal,” says Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.

On Tuesday, the benchmark indices registered a fresh all time high of 77,366.77 points. After a promising uptrend rally the Sensex up by 308 points. Among sectors, Reality and Private Bank indices outperformed, both the indices rallied over one per cent.

Technically, after a gap-up opening, market held the positive momentum throughout the day. On daily and intraday charts, it is holding higher, high and higher low formation, which supports further uptrend from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “For the trend following traders now 77,000 would be the key support level. As long as the market is trading above the same, the bullish sentiment is likely to continue.”

On the higher side, the market could rally up to 77,600-77,800 points. On the other side, below 77,000 level, the sentiment could change. Below the same traders may prefer to exit out from the trading long positions.

STOCK PICKS

Manappuram Finance

Trade: Buy| CMP: 191.74 | SL: 184.40 | Target: 210

The stock has given a strong breakout above its recent resistance mark of 188.35 and successfully managed to close above the same. With the RSI (14) on the daily charts crossing the 60 mark, the momentum looks strong and the stock is ready for a pick-up. Potential targets of 210 and above can likely come in as this rally extends, and a set stop-loss should be kept at the 184.40 mark to manage risk well. Volumes in the stock were nearly 1.5 times its average (30 days) in Tuesday’s trading session.

ABB India

Trade: Buy| CMP: 8,867 | SL: 8,450 | Target: 9,500

The stock has given a strong breakout above its recent resistance mark of 8,750 and is seen to witness a pull-back on its technical charts. With the RSI (14) near the 66 mark and volumes in Tuesday’s session being almost equivalent to its average (30 days) volume, the risk-reward ratio is favorable on the buying side. A set stop-loss should be kept at the 8,450 mark for potential upside targets of 9,500 and above for ABB.

(Source_Riyank Arora Technical Analyst at Mehta Equities)

Benchmark Indices FII Buying Interest Domestic Inflation Monsoon Impact Sensex Market Rally Technical Analysis 
Next Story
Share it