Positive sentiment extends to Indian markets
On Thursday, the benchmark indices experienced a volatile trading session. After a roller coaster of activity, the Sensex was up 677 points. The realty sector outperformed, gaining 1.90 per cent, while some profit-booking was seen in select PSU bank stocks despite strong momentum
image for illustrative purpose
Mumbai, May 17: On Thursday, the benchmark indices experienced a volatile trading session. After a roller coaster of activity, the Sensex was up 677 points. The realty sector outperformed, gaining 1.90 per cent, while some profit-booking was seen in select PSU bank stocks despite strong momentum.
Technically, after an intraday correction, the market found support near 72,530 and made a bullish comeback. On intraday charts, a strong reversal has formed, and the market has closed above the 50 and 20-day SMA (Simple Moving Average), which is largely positive.
“In our view, 73500-73200 would act as a crucial support zon. As long as the index is trading above this, the uptrend is likely to continue,” says Shrikant Chouhan – Head Equity Research Kotak Securities.
At higher levels, immediate resistance for the index could be 74000-74200. On the other hand, a move below the 73,200 could invite further weakness.
The Dow Jones Industrial Average has hit 40,000 for the first time, buoyed by optimism from a softer-than-expected April inflation report, which has increased bets on a September rate cut by the Federal Reserve.
“This positive sentiment extends to Indian markets. Key stock picks include TVS Motors, Indian Hotels, IRCTC, and Coal India Notably, Balrampur Chinni is recommended for buying at CMP 379,with aggressive targets due to its oversold status,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Corporate results from major companies like JSW Steel and Pfizer are also expected today.
