Volatility is expected in today's trading
On Tuesday, the benchmark indices hit a new all-time high of 75,124
image for illustrative purpose
Mumbai, Apr 10: On Tuesday, the benchmark indices hit a new all-time high of 75,124.
However, it failed to sustain at higher levels due to weakness in BFSI and IT stocks. Among sectors, the Metals and Realty indices outperformed. Although the mid and small-cap indices remained unchanged, we saw a few stocks sliding to their crucial support levels.
From a technical standpoint resistance mark after a gap-up opening and accelerated positive momentum after the breakout. However, profit booking at higher levels turned the sentiment volatile.
For trend-following traders 75125 would act as a trend-deciding level. Above that, the market can move towards 75350-75500-75800.
On the other hand, below 74650, the market may retest 74300-74200 levels. It is advisable to take profits on long positions around 75500 levels.
Above 48650, it could move to 49200/49500 with minor resistance at 49000 levels. Buying the dips should be the strategy, with support existing at 48500 and 48400.
“Over the past few weeks, we have been seeing a lot of traction for commodities, they could be smart performers of the current bullish trend,” says Shrikant Chouhan, Head Equity Research, Kotak Securities.
This week, stock markets will be closed on Thursday, April 11th, for Eid Celebrations, leading to a truncated trading period. Volatility is expected in today's trading due to significant US events, including the release of March US CPI and the minutes of the Fed’s March FOMC meeting.
“Positive factors such as expectations of robust Q4 corporate earnings and a pre-election rally are supporting the market. Rising sectoral indices reflects anticipation of healthy Q4 earnings from banks,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
The chart of the day is bullish on stocks like APOLLO HOSPITAL, EICHER MOTORS, INDIGO, and M&M. TCS officially kicks off the Q4 earning season on April 12th.
The top stock pick is APOLLO HOSPITALS, with a recommended buy at CMP and specific target levels, driven by momentum play.
