More room for upward journey
74,500 would act as a trend decider level, above which market could move up till 75,000-75,250. On the flip side, below 74,500 the market could retest the level of 74,300-74,100
Mumbai: On Monday, the benchmark indices registered a fresh all time high of 74,869.30 points. BSE Sensex was up by 494 points. Among sectors, Auto and Reality indices outperformed, Auto gained over two per cent and Reality rallied 1.70 per cent Technically, after a gap-up opening, the 74,500-resistance mark and post breakout it intensified the positive momentum. Higher bottom formation on daily charts and breakout texture on intraday charts indicating further uptrend from the current levels. “For the trend following traders now, the 74,500 would act as a trend decider level,” says Shrikant Chouhan, head (equity research), Kotak Securities.
Above the same, the market could move up till 75,000-75,250. On the flip side, below 74,500 we could see one intraday correction. Below 74,500, the market could retest the level of 74,300-74,100.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Markets maintained optimism throughout the trading session as robust global cues boosted key benchmark indices to fresh record highs on broad-based buying support.”
Domestic fund flows have been strong, which is giving local equity markets a major fillip in spite of choppy foreign fund inflows. Despite expensive valuations, investors are willing to bet big on Indian stocks on expectations of a strong growth momentum going ahead, which would augur well for equity markets.
Stock Picks
Hindustan Copper
CMP: 331.35 | Stoploss: 320 | Target: 350
The stock has given a good breakout above its Jan 2012 highs, indicating strong signs of momentum. With volumes surging and being more than the average (30 days) traded volume in Monday’s session and trading well above all its important moving averages, the stock is looking poised for a good uptrend rally towards 350 and above, with a set stop loss below the 320 mark.
Varroc Engineering
CMP: 536.60 | Stoploss: 500 | Target: 625
The stock has given a good breakout above its Anchor VWAP resistance mark of 535 and is currently seen re-testing its breakout mark. At current levels, the stock is looking good with a low-risk stop loss of 500 for potential targets of 625 and above. We expect a good upside rally in the stock in the coming few days.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
