Buy near intraday supports
After a strong pullback the market witnessed choppy trading session, but maintained positive momentum. The final tally is that the BSE Sensex was up by 157 points. ITC and LT were the top index gainers. On Thursday, post morning selloff the Sensexs took the support near58,350 and reverse sharply after reversal entire day it was hovered between 58,500-58,800.
Sensex forms long bullish candle
- ABB: Above Rs2,329 with a target of Rs2,352 and Stop loss of Rs2,306. The stock is in upward trending channel and has given the breakout
- BHEL: Above Rs64 with a target of Rs65 and Stop loss of Rs63. It has support of 8 and 40 EMA
- ESCORTS: Above Rs1,879 with a target of Rs1,897 and Stop loss of Rs1,861. The stock is in upward trending channel and is on the verge of a breakout
- APLAPOLLO: Above Rs944 with a target of Rs953 and Stop loss of Rs935. It has a support of 8 EMA
- BAJAJCON: Above Rs187 with a target of Rs189 and Stop loss of Rs185. It has reversed from the support of 8 EMA
(Source-CapitalVia)
Mumbai: After a strong pullback the market witnessed choppy trading session, but maintained positive momentum. The final tally is that the BSE Sensex was up by 157 points. ITC and LT were the top index gainers. On Thursday, post morning selloff the Sensexs took the support near58,350 and reverse sharply after reversal entire day it was hovered between 58,500-58,800.
Technically, on daily charts, the index has formed Hammer candlestick formation which indicating indecisiveness between bulls and bears. "We are of the view that, the short-term formation is still in to the bullish side but before fresh breakout market may consolidate within the range of 58,200-59,100," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
Hence, buying near important intraday supports would be the ideal strategy for the day traders. On the flip side, for the trend following traders, 58,200 would be the trend decider level. Below the same uptrend would be vulnerable, he added.
Indian equity market witnessed increased volatility after two days of strong momentum. However, benchmark indices managed to close the day in gains for 3rd consecutive session. While BSE Sensex closed with gains of around 0.3 per cent, broader market outperformed with midcap index up 0.6 per cent and small-cap index gaining 1.2 per cent. Profit booking was witnessed in private banks, IT, financial services and reality sectors. On the positive side where media, FMCG, oil & gas, and auto. Market has seen good recovery in the last three days as buying emerged at lower levels with the comfort of lower valuation and receding fears of Omicron virus.
"We expect to market to consolidate at current levels for the next few days after moving up sharply. The overall structure to remain positive, hence suggest trades to maintain buy on dips strategy," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
