Sensex forms a long bullish candle on daily charts
Intraday texture is mildly overbought, immediate hurdle would 58,200-58,350; on the flip side, 57,500-57,600 would act as a crucial support zone for the day traders
image for illustrative purpose
Stock Picks
- SUNFLAG: Above Rs 124 target of Rs 145 and Stop loss of Rs 115. The stock closed at above the 50 and 100 day moving average. The stock has closed after a consolidation breakout in 15 minute chart.
- JK PAPER: Above Rs 355 with a target of Rs 380 and Stop loss of Rs 343. The stock closed at above the 20 and 80 day EMA.
(Source: Capital Via)
Mumbai: The benchmark indices continued positive momentum for two sessions in a row. BSE Sensex is up by 874 points. Among sectors, almost all the major sectoral indices traded in the green, but Nifty Auto index outperformed, rallied over 2 percent. Technically, after a strong opening the Sensex successfully trade above 200-day SMA, it also formed long bullish candle on daily charts which supports uptrend.
"We are of the view that, the short term texture has changed to positive from negative, but due to overstretch intraday formation, range-bound activity is not ruled out. For the traders, immediate hurdle would 58,200-58,350. On the flip side, 57,500-57,600 would act as a crucial support zone for the day traders," says Shrikant Chouhan, head (equity). The intraday texture is mildly overbought, hence buying on dips and sell on rallies would be the ideal strategy for the day traders, he added.
The Sensex was up 874.18 points, or 1.53 per cent, at 57,911.68 at the close. Around 2252 shares have risen, 1089 have fallen, and 96 have remained unchanged. The Energy sector, which is witnessing resilience in gross refining margins, helped the bulls come back strong today after a very lengthy wait. With the volatility index decreasing, almost all sectoral indices, led by Automobiles, traded in the green. The Bulls were able to come back strong today thanks to accumulation witnessed in some of the big lads who led the collapse over the prior week. The Indian stock market closed on a bullish note, aided by purchasing across sectors.
