Short-term texture looks bullish
The Indian benchmarks made a gap-up opening on Tuesday and continued their gain rally throughout the session amid positive global markets cues.
image for illustrative purpose
![Sensex forms long bullish candle Sensex forms long bullish candle](https://www.bizzbuzz.news/h-upload/2021/10/04/1335737-sensex.webp)
Stock Picks
- MINDAIND: Above Rs1,243 with a target of Rs1,255 and Stop loss of Rs1,231. The stock is in upward trending channel and has given the breakout.
- IEX: Above Rs256 with a target of Rs258 and Stop loss of Rs254. It has support of 8 and 40 EMA.
- ADANIENT: Above Rs1,745 with a target of Rs1,762 and Stop loss of Rs1,728. The stock is in upward trending channel and is on the verge of a breakout.
- JAMNAAUTO: Above Rs105 with a target of Rs106 and Stop loss of Rs104. It has a support of 8 EMA.
- KEI: Above Rs1,163 with a target of Rs1,174 and Stop loss of Rs1,152. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: The Indian benchmarks made a gap-up opening on Tuesday and continued their gain rally throughout the session amid positive global markets cues. Markets was taking support with report that India's exports in the first weeks of December rose 36.20 per cent coupled with rise in outbound shipments around 27.7 per cent. Market participants have some cautiousness as the Centre extended the existing Covid- related restrictions in the country till January month. Traders has taken note of a private report that rise in energy prices may fuelled other commodity items. Inflationary pressures coupled with pandemic induced disruptions may curb the market momentum in the year end. Sentiments would remain positive as the Commerce and Industry ministry data has shown that India's exports rose to 36.2 per cent in December so far.
Asian markets were trading in green after industrial output in Japan advanced to 7.2 per cent in month of November. The benchmark indices continued positive momentum second day in a row. The Sensex was up by 477 points. Among Sectors, almost all the major sectoral indices traded in the green but Auto and Small cap index outperformed.
After a sharp pullback rally, the market Sensex opened with a gap up and post strong opening entire day it was hovering within the range of 57,650-57,950. Technically, after a long time, the BSE Sensex managed to close above 20-day SMA which is broadly positive.
"We are of the view that, the short-term texture is bullish, but due to overstretch intraday rally bulls may prefer to take temporary pause near 58,000-58,100," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
Trading setup suggest, quick intraday correction possible if the BSE Sensex succeed to trade below 57,750 below the same the correction wave will move up to 57,500-57,300.
On the other side, above 57,800 the index uptrend continuation formation will continue up to 58,100. Further upside may also continue which could lift the index up to 58,300, he added.
We witnessed a lacklustre movement in the market start and an attempt to hold the level above the BSE Sensex 30 Index level of 57,800. Our research suggests that sustaining above 57,800 will be an important level for the market to stay positive in the short term. If the market is able to sustain the level of 57,800, we can witness a positive momentum in the market which can lead to the higher levels near 58,400. We have observed the momentum indicators like RSI and MACD indicating positive momentum in the market, an analyst said.