Mkt may consolidate in 57,300-58,000 range
The benchmark indices witnessed sharp pullback rally. The Sensex was up by 881 points. After Monday’s sharp fall, the BSE Sensex on Tuesday opened with a gap up and succeed to trade above 57,000 intraday resistance level.
image for illustrative purpose
Stock Picks
- BAJAJHLDNG: Above Rs5,399 with a target of Rs5,453 and Stop loss of Rs5,345. The stock is in upward trending channel and has given the breakout.
- ADANIPORTS: Above Rs746 with a target of Rs753 and Stop loss of Rs739. It has support of 8 and 40 EMA.
- ATGL: Above Rs1,617 with a target of Rs1,633 and Stop loss of Rs1,601. The stock is in upward trending channel and is on the verge of a breakout.
- BLUESTARCO: Above Rs1,011 with a target of Rs1,021 and Stop loss of Rs1,001. It has a support of 8 EMA.
- CANBK: Above Rs210 with a target of Rs212 and Stop loss of Rs208. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: The benchmark indices witnessed sharp pullback rally. The Sensex was up by 881 points. After Monday's sharp fall, the BSE Sensex on Tuesday opened with a gap up and succeed to trade above 57,000 intraday resistance level. Due stable global cues and short covering, the index maintained positive momentum throughout the day. Among sectors, after a long-time strong buying interest was seen in metal and banking stocks. Amid sectors, Nifty Metal index was the biggest gainer, rallied 3.30 per cent. Technically, post reversal formation the Sensex has formed promising bullish candle. And on intraday charts, it also formed higher bottom formation which supports short term uptrend.
"We are of the view that, the uptrend wave is likely to continue in the near future, but due to overstretch intraday momentum market may consolidate within the range of 57,300-58,000 price range," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
Hence, buying on intraday correction and sell on rallies would be the ideal strategy for the day traders. On the flip side, below 57,300 uptrend would be vulnerable, he added.
Talking to Bizz Buzz, Deven Choksey, group MD, KR Choksey, said: "In overall, the market is remaining volatile. However, Monday's fall was exaggerated. Omicron pressure is coming down on the global market. Gradually, we will see a rebound in the market. The market is going to be range-bound. In case there are any corrections, recoveries will also be there. Still, I believe that this correction is a fantastic opportunity to buy stocks at lower levels. Whatever investment you are making in the market at this stage, it will be relatively saved." We witnessed some swift recovery in the market and an attempt to hold the level above the BSE Sensex 30 Index level of 57,800. Our research suggests that sustaining above 57,800 will be an important level for the market to stay positive in the short term. If the market is able to sustain the level of 57,800, we can witness a positive momentum in the market which can lead to the higher levels near 58,500. Technical indicators suggest a volatile movement in the market, another analyst said.
