Mkt may consolidate in 55,800-57,000 range
The Indian benchmarks made an optimistic opening tracking gains in other Asian markets. Traders were taking encouragement as Commerce Ministry official said Indian exports showed a turnaround after December last year and are still strong.
image for illustrative purpose
Stock Picks
- HGS: Above Rs3,330 with a target of Rs3,363 and Stop loss of Rs3,297. The stock is in upward trending channel and has given the breakout
- JKCEMENT: Above Rs3,431 with a target of Rs3,465 and Stop loss of Rs3,397. It has support of 8 and 40 EMA
- CGPOWER: Above Rs175 with a target of Rs177 and Stop loss of Rs173. The stock is in upward trending channel and is on the verge of a breakout
- JSLHISAR: Above Rs320 with a target of Rs323 and Stop loss of Rs317. It has a support of 8 EMA
- HOMEFIRST: Above Rs830 with a target of Rs838 and Stop loss of Rs822. It has reversed from the support of 8 EMA
(Source-CapitalVia)
Mumbai: The Indian benchmarks made an optimistic opening tracking gains in other Asian markets. Traders were taking encouragement as Commerce Ministry official said Indian exports showed a turnaround after December last year and are still strong. Support came in the market as the Asian Development Bank (ADB) will provide $350 million loan to improve access to urban service in India by accelerating policy action and reforms. Bearish sentiment biting deeper into the global markets with the central bank monetary policies to tighten the money supply in the economy. Market participants showed more optimism towards pharma stocks as the Omicron virus running riots.
The benchmark indices witnessed sharp pullback rally, the BSE Sensex was up by 497 points. Among Sectors, all major sectoral Indices traded in the green but metal index gained the most, rallied over three per cent. Technically, on daily charts, the Sensex has formed Doji kind of candle stick formation which indicating indecisiveness between bulls and bears.
On intraday charts, it also completed one leg of pullback rally. "We are of the view that, after a modest pullback rally the market may consolidate within the range of 55,800 to 57,000 price ranges. The texture of the chart suggests, 56,100 and 55,800 would be the key support levels," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
On the other side, 56,700-57,000 would act as an immediate hurdle for the market. The texture of the market is volatile hence buying dips and sell on rallies would be the ideal strategy for the day traders. However, below 55,800 uptrend would be vulnerable, he added.
"We witnessed the continuation of the strong pullback rally in the market after a big correction that occurred in the market on Monday. While sustaining above 56,000 is the key factor from a short-term perspective, our research suggests, a decisive breakout above the zone of 56,900-57,000 could open the gate for a movement till 57,500. Technical indicators suggest a volatile movement in the market. As such we retain our cautious stance and advise the traders to refrain from building a fresh buying position, until we see further improvement and market sustain above 56,900", another analyst said.
