Traders May Exit Long Positions
If market stays above 76,000, pullback formation is likely to continue; On the upside, the market could bounce back to the 20-day SMA at 77,000 and 77,200
Traders May Exit Long Positions
Mumbai: On Wednesday, the benchmark indices continued their positive momentum, BSE Sensex was up by 632 points. Among the sectors, Defence, IT, Media, and Realty indices rallied over 2 per cent. Technically, after a positive opening, the market maintained its upward trajectory throughout the day and formed a bullish candle on the daily charts, while also holding a higher bottom formation on the intraday charts. This supports a further uptrend from the current levels.However, if it falls below 76,000, the sentiment could change. In that case, traders may prefer to exit their long positions.
Shrikant Chouhan, Head-Equity Research, Kotak Securities, said: “We believe that if the market stays above 76,000, the pullback formation is likely to continue, and on the upside, the market could bounce back to the 20-day SMA (Simple Moving Average) at 77,000 and 77,200.”
Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “Positive US markets and gains in European indices aided domestic market sentiment, as the relief rally continued for a second straight session ahead of Thursday’s monthly F&O expiry. Since the market was in an oversold position, there was some breather expected in the form of renewed optimism, which was seen in mid & small-cap stocks that rallied sharply after the recent sell-off.”However, with the Budget to be announced in next few days and FII selling remaining unabated, undertone will continue to remain cautious.
STOCK PICKS
IEX | TRADE-BUY | CMP: Rs177 | SL: Rs173 | TARGET: Rs190
The stock has given a strong breakout above the immediate resistance mark of Rs175 and is managing to trade well above the same. With the price witnessing a sharp spike and the stock seeming all set for an upside move towards Rs190 and above, we advise a buy on this stock with a set stop loss at the 173 mark to manage risk well. Strong volume pickup with bullish momentum makes the stock an attractive buy at current levels.
TVS MOTORS | TRADE-BUY | CMP: Rs2,473 | SL: Rs2,425 | TARGET: Rs2,600
The stock has given a strong breakout above its trendline resistance mark of Rs2,410 and is managing to hold well above the same. With a sharp surge in volumes and stock looking all set for a move towards Rs2,600 and above, we advise a buy with a strict stop loss of Rs2,425 on the downside to manage risk well.
(Source: Riyank Arora, technical analyst at Mehta Equities)
