Support shifted to 56,420 from 56,120
The benchmark indices continued the positive momentum for second day in a row, the BSE Sensex rallied near 611 points. Among sectors, after a long-time buying interest was seen in reality and pharma and meatal stocks. After a strong opening the Sensex took intraday support at 56,470 and reversed sharply.
image for illustrative purpose
Stock Picks
- MINDAIND: Above Rs1,198 with a target of Rs1,209 and Stop loss of Rs1,187. The stock is in upward trending channel and has given the breakout.
- ABFRL: Above Rs277 with a target of Rs280 and Stop loss of Rs275. It has support of 8 and 40 EMA.
- ABB: Above Rs2,277 with a target of Rs2,299 and Stop loss of Rs2,255. The stock is in upward trending channel and is on the verge of a breakout.
- BHARTIARTL: Above Rs686 with a target of Rs692 and Stop loss of Rs680. It has a support of 8 EMA.
- CUMMINSIND: Above Rs929 with a target of 938 and Stop loss of 920. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: The benchmark indices continued the positive momentum for second day in a row, the BSE Sensex rallied near 611 points. Among sectors, after a long-time buying interest was seen in reality and pharma and meatal stocks. After a strong opening the Sensex took intraday support at 56,470 and reversed sharply.
Technically, on intraday charts, the index has maintained higher bottom formation which is broadly positive for the market. The texture of the market suggest uptrend wave is likely to continue in the near future. "We are of the view that, the support has shifted to 56,420 from 56,120 and as long as the index trading above the same the positive momentum will continue till 57,100-57,400," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
On the flip side, dismissal of 56,400 may increase further weakness till 56,120-56,000, he added. Low market volumes in the last few sessions have contributed to exaggerated market volatility. Despite a sharp correction in the last week, Retail net long Open Interest in stock futures has come off by only two per cent, pointing to continued confidence in staying invested. Consumer-facing sectors like banking and FMCG have broken critical moving averages pointing to a break in the medium-term uptrend.
S Hariharan, head (sales trading), Emkay Global Financial Services, says that a consolidatory phase going into results season is expected as volumes would remain muted for the rest of December, since there are expected to be few triggers in terms of newsflow. IT sector continues to attract greater interest, while bottom-fishing is seen in auto sector. PSU banks appear relatively stronger than private banks, and Metals names are expected to resume their uptrend after finding support at the 2-year trendline."
