RSI, MACD indicating positive momentum
Mumbai: On the last day of November F&O series, the BSE Sensex gained by 454 points. Post Wednesday's sharp fall, the market took the support near 58,100 and reversed sharply. Thursday's intraday rally, largely supported by the Reliance Industries gained over six per cent.
Among Sectors, some buying interest was seen in Energy, Media and Infra stocks whereas Auto and PSU Banks witnessed Technical sell off at higher levels. Technically, the index has formed strong bullish candle and at the same time it is consistently taking support near between 58,300 and 58,100 levels.
We are of the view that, now, the intraday support has shifted to 58,400 from 58,100 and as long as its trading above 58,400, the uptrend wave will persist up to 59,000-59,300. On the flip side, below 58,400 uptrend would be vulnerable.
"The intraday texture of the chart is robust, hence trend following approach would be the ideal strategy for the intraday traders," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
The Indian benchmarks has a cautious start amid mixed global cues. Traders will be taking encouragement with a private report that GDP will show a 7.8 per cent expansion on YoY basis for the September quarter. Rising corona virus cases may impact domestic markets sentiments. Some support may come as India and US have agreed to a transitional approach on equalization levy or digital tax on e-commerce supplies. Traders may take note of Assocham's statement that RBI should continue with an accommodative interest rate to sustain and further push the pace of economic growth.
"We witnessed some lackluster movement in the market and an attempt to hold the level around the BSE Sensex 30 Index level of 58,700. Our research suggests that sustaining above 58,700 will be an important level for the market to stay positive in the short term. If the market is able to sustain the level of 58,700, we can witness a positive momentum in the market which can lead to the higher levels near 59,000. We have observed the momentum indicators like RSI and MACD indicating positive momentum in the market," another analyst said.
n ADANITRANS: Above Rs2,034 with a target of Rs2,054 and Stop loss of Rs2,014. The stock is in upward trending channel and has given the breakout.
n BANDHANBK: Above Rs316 with a target of Rs319 and Stop loss of Rs313. It has support of 8 and 40 EMA.
n AFFLE: Above Rs1,673 with a target of Rs1,690 and Stop loss of Rs1,657. The stock is in upward trending channel and is on the verge of a breakout.
n ATGL: Above Rs735 with a target of Rs742 and Stop loss of Rs728. It has a support of 8 EMA.
n COFORGE: Above Rs5,518 with a target of Rs5,573 and Stop loss of Rs5,463. It has reversed from the support of 8 EMA.