Sensex forms long bullish candle on weekly charts
Charts also support short-term uptrend. For the traders, the support has shifted to 57,000 from 56,400. As long as the index is holding 57,000 the uptrend texture is intact and above which the uptrend wave will continue till 58,200; Investors are advised to deploy cash in part to take advantage of any further fall
image for illustrative purpose
Stock Picks
- SUN PHARMA: Above Rs915 with a target of Rs925 and Stop loss of Rs905. The stock is in positive momentum and is at the support of 40 EMA.
- DIVISLAB: Above Rs4520 with a target of Rs4580 and Stop loss of Rs4480. It has a support of 8 EMA and has given a breakout in smaller time frame.
- BRIGADE ENTERPRISE: Above Rs540 with a target of Rs555 and Stop loss of Rs530. It is at the support of 8 and 40 EMA.
- TATA MOTORS: Above Rs436 with a target of Rs445 and Stop loss of Rs430. It has reversed from the recent support zone.
- HDFCLIFE: Above Rs533 with a target of Rs545 and Stop loss of Rs527. It has reversed from the support of 8 EMA.
(Source: Capital Via)
Mumbai: In the last week, the benchmark indices continued positive momentum, as a result the BSE Sensex was up by 2250 points or four per cent. On last Monday, the Sensex opened with a positive note and maintains higher bottom formation throughout the week. Among Sectors, Banking and Financial stocks outperformed whereas despite strong market momentum some profit booking was seen in Metal and Energy stocks.
Technically, during the week, the Sensex not only successfully cleared 20 and 200-day SMA levels, but succeed to close above the same which is broadly positive.
From the monthly lowest levels, the Sensex rallied over 5540 points and now, it is trading near 50-day SMA. It also formed long bullish candle on weekly charts that also support short-term uptrend. We are of the view that, the texture of the market is positive and likely to continue in the near future. However, due to temporary overbought situation, strong possibility of intraday correction is not ruled out.
"For the traders, the support has shifted to 57,000 from 56,400. As long as the index is holding 57,000 level the uptrend texture is intact and above which the uptrend wave will continue till 58,200 further upsides may also continue which could lift the index up to 58,650," says Amol Athawale, deputy vice-president (technical research), Kotak Securities. On the flip side, 57,000 would be the sacrosanct support level for the Sensex. Close below the same, the chances of hitting 56,700-56,400would turn bright, he added.
Rahul Sharma of Equity 99 says that markets today made good up move on the back of up move in US markets despite rate hike by Fed. Markets were appearing to be in oversold zone and such up move was expected.
However, the war still persists between Russia and Ukraine and any major move there might trigger selling in the markets. Also crude continue to hover near $100 mark. Investors are advised to deploy cash in part to take advantage of any further fall.
