Traders await either side breakout
For the traders now, 80,390 would be the immediate breakout level, above which, the market could rally up to 80,700-80,800pts; On the flip side, the sentiment could change below 80,000
image for illustrative purpose
Mumbai: The benchmark indices continued positive momentum as BSE Sensex registered a fresh all time high of 80,392.64 Among sectors, Pharma, Healthcare and IT indices rallied over one per cent whereas some profit booking were seen in selective Media and Financial stocks.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “For the day traders now, 80,390 would be the immediate breakout level. Above which, the market could rally up to 80,700-80,800. On the flip side, below 80,000 the sentiment could change.”
Technically, after a gap-up opening, the entire day, the market hovered between 80,000-80,390 price ranges. After a promising uptrend rally currently, market witnessing non-directional activity at higher levels, perhaps traders are waiting for either side breakout. Below the same, the market could retest the level of 79,700-79,550 range.
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Benchmark Sensex steadily pared gains after scaling new life-time high in early trades, but managed to close above the 80k-mark for the first time due to selective buying in banking and IT stocks. While the market is in an overbought zone, investors would rather wait for Budget to throw positive surprises before taking aggressive stance.”
Stock Picks
Lal Path Labs – Buy| CMP: 2,906.65 | SL: 2,855 | TARGET: 3,075
The stock has given a good breakout above its recent swing high resistance mark of 2,889 and successfully managed to close above the same. With the price seen to be reversing in the form of an inverted head & shoulder pattern formation on the weekly charts, the stock looks poised for an upside towards potential targets of 3,075 and above, with a set stoploss at the 2,855 mark.
Granules India – Buy| CMP: 514.40 | SL: 509 | TARGET: 530
The stock has given a strong breakout above its recent resistance mark of 510.50 and successfully managed to close above the same. With the RSI (14) on daily charts being around 70 and witnessing a good uptick, the stock looks set for an upside move towards 530. A strict stoploss should, however, be kept at the 509 mark to manage risk well on this trade.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs
