Charts indicate positive short-term texture
For trend followers, 59,150 would act as a key resistance zone, above which, it could move up to 59,400-59,500; On the flip side, quick intraday correction possible if index breaches the 58,750 support level, below which, it could slip till 58,500
Bulls losing hold on the trend
Mumbai: The benchmark indices continued the positive momentum, BSE Sensex was up by 549 points. Among sectors, all the major sectoral indices were traded in the green, but PSU Bank index outperformed, rallied nearly 4 per cent.
Technically, on the backdrop of strong global cues our market opened with a gap up and entire day hovered near 50 day SMA (Simple Moving Average) level.
"We are of the view that, the short-term texture of the market is positive and now 50 days SMA or 59,150 would act as a key resistance zone for the Sensex," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
For the trend following traders, 59,150 would be the next breakout level. Above which, the index could move up to 59,400-59,500. On the flip side, quick intraday correction possible if the index breaches the 58,750 support level. Below which, the index could slip till 58,500.
Stock Picks
Tata Motors: We have seen bottom formation around 100 day average around Rs400 and on Tuesday we have seen some rally with volumes. Sustaining above Rs407 will give a new hope for rally and can be bought for Targets of Rs418/423 SL Rs401.
Tata Power: Tata Power has corrected 30 per cent recently from the high and is forming consolidating pattern around Rs220. Indicators have turned bullish with crossover above averages and stock can be bought for Targets of Rs226/229 with SL Rs218.
(Source: Kotak Securities)
