59,750pts to act as a key support level

Stock Picks

- VOLTAS: Above Rs1,252 with a target of Rs1,264 and Stop loss of Rs1,240. The stock is in upward trending channel and has given the breakout.

- COFORGE: Above Rs5,390 with a target of Rs5,443 and Stop loss of Rs5,337. It has support of 8 and 40 EMA.

- ALKEM: Above Rs3,986 with a target of Rs4,025 and Stop loss of Rs3,947. The stock is in upward trending channel and is on the verge of a breakout.

- ICICIPRULI: Above Rs679 with a target of Rs685 and Stop loss of Rs673. It has a support of 8 EMA.

- TCS: Above Rs3,839 with a target of Rs3,877 and Stop loss of Rs3,801. It has reversed from the support of 8 EMA.

(Source-CapitalVia)

Mumbai: The benchmark indices witnessed a robust rally. On Tuesday despite tepid cues, the BSE Sensex held the 59,350 support level, and in the late afternoon, it finally cleared the intraday resistance of 59,630 points. After the intraday breakout, the Sensex rallied over 400 points. Among sectors, buying was seen in oil and gas and IT stocks. Whereas, reality and PSU banks witnessed technical sell-off.

Technically, on daily charts, post-reversal formation, the index has formed uptrend continuation formation and on intraday charts, it has formed promising higher high and higher low series formation which clearly support further uptrend.

"We are of the view that 59,750 would be the key support level for the trend following traders. Above the same uptrend texture is likely to continue up to 60,180-60,300," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities. On the flip side, below 59,750 may trigger quick intraday correction up to 59,580, he added. On the flip side beyond 59,400 the immediate hurdle would be 59,600. Further upside may also continue which could lift the index up to 59,900, he added.