Mkts likely to be volatile in near term
20-day SMA or 73,100 would act as a key resistance for the bulls
Mumbai: On Wednesday, the benchmark indices witnessed a positive momentum.Sensex was up by 526 points. Among sectors, infra, oil and gas indices gained nearly 1 per cent whereas intraday profit booking was seen in selective PSU banks and media stocks.
Technically, after a positive opening, the market held the positive momentum throughout the day, on daily charts, the index has formed bullish candle and on intraday charts, it has hold higher bottom formation, which is broadly positive.
“We are of the view that, the market texture is bullish but in the near future, 20-day SMA (Simple Moving Average) or 73,100 would act as a key resistance for the bulls,” says Shrikant Chouhan, Head Equity Research, Kotak Securities. Above which, the market could move up till 73,400-73,500. On the flip side, below 72,800 the sentiment could change. Below which the market could retest the level of 50-day SMA or 72,500-72,400.
Prashanth Tapse, Senior VP (Research), Mehta Equities says, “Optimism returned to the street as impressive buying in select banking, auto, realty and capital goods stocks saw the Sensex come close to ending above the 72000 mark.”
Despite the smart recovery, volatility is likely to continue in the near term with an intermittent spell of bullish momentum.
Stock Picks
Alkem Labs
CMP: 5004.20 | Stoploss: 4940.00 | Target: 5220.00
The stock has given a good breakout above its trendline on daily charts. With a good pickup in volumes and a minor 50-point gap-up opening, the stock managed to hold its gains through the day. A strict stoploss can be kept at the 4940 mark for potential upside targets of 5200 and 5220 for Alkem Labs.
TVS MOTOR
CMP: 2123.15 | Stoploss: 2050.00 | Target: 2300.00
The stock has given a good breakout above its anchor VWAP resistance mark of 2111.00 on its daily charts and successfully managed to close above the same. Overall, with a good volume pick-up on the counter, the stock looks poised for an upside rally towards 2300 and above, with a strict stoploss kept at the 2050 mark.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
