Short covering likely above 52,400 level
For the third consecutive day, the market has managed to register a new high.
image for illustrative purpose
Mumbai: For the third consecutive day, the market has managed to register a new high.
On Monday, the BSE Sensex reached 52,378, before again correcting back to 52,330 levels. However, the trading range is not expanding, which is an indication of cautiousness at higher levels.
The power and energy-related stocks did extremely well, we saw some interesting buying in technology companies. The market breadth remained strong. The Bank-Nifty closed around the opening levels for the day, bringing huge volatility in tomorrow's date. Technology stocks closed at the highest point of the day. "Technically, 52,300/52,400 would be major obstacles for the market and sustenance above 52,400 levels, would invite short covering in the market. Below the levels of 52,300, Sensex would fall to 52,000 or 51,850 levels," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
Stock Picks
- TATAMOTORS - Above Rs351 with a target of Rs370 and Stop loss of Rs339. It is trading in a strong uptrend mode and is on the verge of a fresh breakout.
- AARTIIND - Above Rs1,720 with a target of Rs1,748 and Stop loss of Rs1,695.Is has support of 8 and 40 EMA.
- RALLIS - Above Rs334 with a target of Rs345 and Stop loss of Rs325. The stock is in upward trending channel and is on the verge of a breakout.
- DABUR - Above Rs550 with a target of Rs558 and Stop loss of Rs542. It has a support of 8 and 40 EMA.
- INFY - Above Rs1,392 with a target of Rs1,410 and Stop loss of Rs1,377. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
