Support level shifts to 58,400 from 58,100
Due to buying in frontline counters, Indian equities markets added gains to sustain robust activity in the afternoon session. After the RBI’s Monetary Policy Committee (MPC) decided to keep the main interest rates on hold, the mood on the street was upbeat.
image for illustrative purpose
Stock Picks
- ULTRACEMCO: Above Rs7,575 with a target of Rs7,650 and Stop loss of Rs7,525. The stock is in consolidating near Rs7,575 and has reversed from the support of 8 and 40 EMA
- JINDAL STEEL: Above Rs443 with a target of Rs450 and Stop loss of Rs435. It has support of 8 and 40 EMA
- LTTS: Above Rs4,700 with a target of Rs4,780 and Stop loss of Rs4,640. The stock has reversed from the support levels and is on the verge of a breakout in smaller time frame
- JSWENERGY: Above Rs325 with a target of Rs335 and Stop loss of Rs315. It has a support of 8 & 40
- GRASIM: Above 1770 with a target of 1790 and Stop loss of 1750. It has support of 8 and 40 EMA
(Source: CapitalVia)
Mumbai: Due to buying in frontline counters, Indian equities markets added gains to sustain robust activity in the afternoon session. After the RBI's Monetary Policy Committee (MPC) decided to keep the main interest rates on hold, the mood on the street was upbeat. The MPC agreed unanimously to hold the repo rate at four per cent and voted 5:1 to maintain an accommodative policy for as long as it is needed to resurrect growth on a long-term basis. In addition, the Governor of the Reserve Bank of India (RBI) expects inflation to peak in the current quarter, with a tolerance band, before moderating in the second half of next fiscal year. On the global front, Asian markets were largely higher ahead of the release of US inflation data later in the day, which could have a significant impact on the Fed's rate rise intentions.
The benchmark indices continued the positive momentum, the market picked up the momentum post RBI'S decision to keep the policy interest rate unchanged.
The BSE Sensex was up by 460 points. Among Sectors, Media, Metal and IT indices witnessed strong buying interest whereas some profit booking was seen in selective Auto and PSU banks stocks. Technically, the market maintained strong momentum and succeed to trade above 50-day SMA.
The Intraday formation indicating further uptrend from current levels. In addition, on daily charts, the index has formed bullish candle that also support uptrend.
"For the traders now support has shifted to 58,400 from 58,100 and as long as the index trading above the same, the uptrend formation will persist till 59,200-59,400," says Shrikant Chauhan, head (equity research-retail), Kotak Securities.
On the flip side below 58,400 or 50-day SMA uptrend would be vulnerable, he added.
