Mumbai: On Wednesday, the benchmark indices bounce back sharply as BSE Sensex was up by 409 points. Among sectors, private banks and healthcare indices gained nearly one per cent whereas Media index lost the most shed over two per cent. Technically, after early morning intraday correction, the market took the support near 73,350 and reversed sharply, it also formed long bullish candle on daily charts, which support further uptrend from the current levels.
“For the trend following traders now, the 73,700 would act as a key support level to watch out. Above the same, the market could continue the positive momentum till 74,400-74,500 range,” says Shrikant Chouhan, head (equity research), Kotak Securities. On the flip side, below 73,700 level, traders may prefer to exit out from the trading long positions.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Gains in European & Asian indices and Dow Futures indicating a positive start for the US markets helped local shares reverse the sluggish trend in the second half, as optimism in banking and IT stocks buoyed the key benchmark gauges to fresh all-time intra-day highs.”
India’s sovereign bond inclusion in the Bloomberg EM bond index from 2025 also contributed to the optimism. However, one can see that recovery was not broad-based, and hence markets are more likely to see sideways movement in the near term.
Stock Picks
Tata Consumer (Buy)
CMP: 1,220 | SL: 1190 | Target: 1,250 and 1,275
The stock has given a good breakout above its recent swing high resistance mark of 1,214-1,215. Overall momentum looks bullish and the stock should head higher towards 1,250 and 1,275, with a set stop loss at 1,200 mark.
Shriram Pistons (Buy)
CMP: 1,646.55 | SL: 1,550 | Target: 1,750 and 1,900
The stock is giving a good re-test to its anchor VWAP support mark if 1,600 to 1,650. Overall trend looks positive on the stock and we expect it to head higher towards 1,750 and above as momentum starts picking up again. With the stock trading above all its moving averages, the trend looks positive and stock seems poised for a good up-move.
