Be defensive as the market approaches previous highs
Another buzzing day for the market. The Sensex gained 1,197 points, despite strong gains in the previous session. The Bank Nifty closed above 34000 levels, which is 4000 points higher as compared to the closing levels for the expiry of January 2021. Despite huge up move, the BSE Sensex failed to move beyond its previous highs of 50,184.01. Based on the daily chart, the Sensex opened with a large price gap compared to the previous day's high and remained at a high level despite facing several rounds of profit booking throughout the day. The next level to watch out would be 50,185 followed by 50,900 levels.
There should be a strategy to buy between 49,000 and 48,700 levels. Traders and investors need to keep the last stop loss at 48,400. We need to be defensive as the market approaches previous highs and focus should be on pharmaceuticals and FMCG stocks.
1) AAVAS-Above 2000 with a target of 2040 and Stop loss of 1960. It has reversed from the support of 8 DMA.
2) ADANIENT - Above 567 with a target of 578 and Stop loss of 559. It has reversed from the support of 8 AND 40 EMA.
3) APOLLOHOSP - Above 2750 with a target of 2825 and Stop loss of 2700. It is trading in an upward trending channel.
4) CIPLA - Above 830 with a target of 850 and Stop loss of 810. It has a support of 8 and 40 DMA.
5) CONCOR - Above 463 with a target of 476 and Stop loss of 450. It is trading in an upward trending channel.