Overstretch rally triggers caution
The benchmark indices witnessed a steller rally, the BSE Sensex registered a fresh all time high of 60,836 points. Post gap up opening the index successfully clear the 60,500 resistance mark and maintained intensified momentum throughout the day.
image for illustrative purpose
Stock Picks
- AARTIIND: Above Rs1,109 with a target of Rs1,120 and Stop loss of Rs1,098. The stock is in upward trending channel and has given the breakout.
- NAVINFLUOR: Above Rs3,929 with a target of Rs3,968 and Stop loss of Rs3,890. It has support of 8 and 40 EMA.
- SOBHA: Above Rs855 with a target of Rs863 and Stop loss of Rs847. The stock is in upward trending channel and is on the verge of a breakout.
- GSFC: Above Rs134 with a target of Rs136 and Stop loss of Rs132. It has a support of 8 EMA.
- BAJAJHLDNG: Above Rs4,725 with a target of Rs4,772 and Stop loss of Rs4,678. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: The benchmark indices witnessed a steller rally, the BSE Sensex registered a fresh all time high of 60,836 points. Post gap up opening the index successfully clear the 60,500 resistance mark and maintained intensified momentum throughout the day. Wednesday's rally was largely dominated by auto stocks. Amid auto stocks, Tata Motors gain the most. Rallied over 20 per cent.
Technically, the index maintained strong breakout continuation formation which clearly suggest further uptrend from current levels. "We are of the view that, the short term chart formation is still in to the long side, but due to overstretch intraday rally the bulls may take a caution stance between 61,100-61,00-61,300. For the day traders, 60,600 would act as a key support level," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
Above the same, the uptrend wave will continue up to 60,850-61,300. On the other side, dismissal of 60,500 could possibly trigger correction wave up to 60,300-60,150, he added.
