57,250 key level for traders
The Indian Benchmarks made an optimistic opening tracking gains in other Asian markets. Traders were taking encouragement as Commerce Ministry official said Indian exports showed a turnaround after December last year and are still strong.
Sensex forms long bullish candle
Stock Picks
- HGS: Above Rs3,330 with a target of Rs3,363 and Stop loss of Rs3,297. The stock is in upward trending channel and has given the breakout.
- JKCEMENT: Above Rs3,431 with a target of Rs3,465 and Stop loss of Rs3,397. It has support of 8 and 40 EMA.
- CGPOWER: Above Rs175 with a target of Rs177 and Stop loss of Rs173. The stock is in upward trending channel and is on the verge of a breakout.
- JSLHISAR: Above Rs320 with a target of Rs323 and Stop loss of Rs317. It has a support of 8 EMA.
- HOMEFIRST: Above Rs830 with a target of Rs838 and Stop loss of Rs822. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: The Indian Benchmarks made an optimistic opening tracking gains in other Asian markets. Traders were taking encouragement as Commerce Ministry official said Indian exports showed a turnaround after December last year and are still strong. Support came in the market as the Asian Development Bank (ADB) will provide $350 million loan to improve access to urban service in India by accelerating policy action and reforms. Bearish sentiment is biting deeper into the global markets as the central bank monetary policies to tighten the money supply in the economy. Market participants showed more optimism towards pharma stocks as the Omicron virus running riots. The market witnessed a sharp pullback rally, the BSE Sensex was up by 295 points.
Among sectors, pharma and IT indices registered strong buying interest whereas technical sell off was seen in selective media stocks. After an early morning selloff, the market took the support near 56,550 and reversed quickly. Technically, the index recovered sharply from the intraday lowest level and it also formed strong bullish candle, which indicates strong possibility continuation of uptrend in the near future.
"We are of the view that, now 57,250 would be the key level for the trend following traders, above the same the uptrend formation is likely to continue till 57,600-57,900. On the other side, below 57,250 could possibly open another correction wave up to 57,000-56,800," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
We witnessed the continuation of the strong pullback rally in the market after a big correction that occurred in the market on Monday. While sustaining above 56,000 is the key factor from a short-term perspective, our research suggests, a decisive breakout above the zone of 56,900-57,000 could open the gate for a movement till 57,500. Technical indicators suggest a volatile movement in the market. As such we retain our cautious stance and advise the traders to refrain from building a fresh buying position, until we see further improvement and market sustain above 56,900, another analyst said.
