A close below 53,200 level would be negative for market
54,100 and 53,800 would be key support areas, above 55,000 levels, Sensex would bounce back to 55,200 or 55,500 levels. Strategy is to buy on a dip supports between the levels of 54,100-53,800 with a stop loss at 53,300
image for illustrative purpose
![Equity indices extend gains for 4th straight sessios Equity indices extend gains for 4th straight sessios](https://www.bizzbuzz.news/h-upload/2021/10/31/1387108-markets.webp)
Stock Picks
- TECHM: Above Rs1515 with a target of Rs1545 and Stop loss of Rs1495. The stock is in positive momentum and is at the support of 40 EMA
- HCLTECH: Above Rs1200 with a target of Rs1245 and Stop loss of Rs1380. It has a support of 8 EMA; 40 EMA and has given a breakout in a smaller time-frame
- JINDALSTEL: Above Rs460 with a target of Rs480 and Stop loss of Rs450. It is at the support of 40 EMA
- GUJGAS: Above Rs545 with a target of Rs565 and Stop loss of Rs535. It has reversed from the recent support zone
- MINDTREE: Above Rs4155 with a target of Rs4225 and Stop loss of Rs4100. It has reversed from the support of 8 EMA
(Source: Capital Via)
Mumbai: On Tuesday, the market witnessed a strong rally with BSE Sensex rising up 1,223 points in the benchmark indices. Among sectors, reality, media, financial rose, while metal stocks again saw profit-booking from higher levels. However, even though the market has gained momentum, India VIX has come down nominally. On Thursday, on the day of the weekly expiry of the index options, we can see a sharp contraction in the volatility index of India only after the announcement of the election results.
"53,365 and 54,900 acted as major support and resistance for the market during the day. 54,100 and 53,800 would be key support areas for the market on Thursday," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities. At higher levels, above 55,000 levels, Sensex would bounce back to 55,200 or 55,500 levels. A close below the 53,200 level would be negative for the market. The market structure is suggesting that the strategy is to buy on a dip supports between the levels of 54,100-53,800 with a stop loss at 53,300, he added.
Benchmark equity indices rocketed to day's high levels in the late afternoon session, trading strength to strength, on continuous buying activity in index heavyweights Reliance Industries, Bajaj Finance, and Mahindra &Mahindra. Aside from that, broader indices such as the BSE Mid-size index and the BSE Small cap indices were also gaining ground. Traders have expressed their support for Prime Minister Narendra Modi's approval of the establishment of the National Land Monetization Corporation (NLMC) as a totally owned Government of India corporation, another analyst said. The government would be able to gain significant cash by monetizing under used and under-used assets through non-core asset monetization. Asian stock markets were mixed on the world stage. European stock indexes were up as investors kept an eye on rising commodity prices and the ongoing conflict in Ukraine.