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Index holds higher bottom formation

58,200 would be the trend decider level, above which the index will move up to 58,800-59,000; Below 58,150, strong possibility of one quick correction till 58,000-57,800 points

Sensex forms long bullish candle
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Sensex forms long bullish candle

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Stock Picks

- TATA POWER: Above Rs240 with a target of Rs245 and Stop loss of Rs235. The stock is in consolidating near Rs240 in smaller time frame and has reversed from the support of 40 EMA

- COAL INDIA: Above Rs170 with a target of Rs177 and Stop loss of Rs165. It has support of 8 and 40 EMA

- MARUTI: Above Rs9,000 with a target of Rs9,150 and Stop loss of Rs8,900. The stock is in upward trending channel and is on the verge of a breakout

- NATCO PHARMA: Above Rs925 with a target of Rs950 and Stop loss of Rs900. It has a support of 8 & 40 EMA

- CIPLA: Above Rs973 with a target of Rs995 and Stop loss of Rs950. It has support of 8 EMA

(Source: CapitalVia)

Mumbai: The benchmark indices bounce back sharply, the BSE Sensex was up by 657 points. Among sectors, Auto, media and metal stocks witnessed strong buying interest whereas registered technical selloff on PSU bank stocks.

Technically, after a strong gap-up opening, the market was hovered within the range of 58,200 to 58,400 points.

The last hour intraday breakout formation indicates a continuation of an uptrend in the near future. In addition, on intraday charts, the index is holding higher bottom formation which is broadly positive.

"For the trend following traders now 58,200 would be the trend decider level. Above which the index will move up to 58,800-59,000. However, trading below 58,150, strong possibility of one quick correction till 58,000-57,800 is not ruled out," says Shrikant Chauhan, head (equity research-retail), Kotak Securities.

The surge in international fuel and commodity prices, according to NITI Aayog, vice- chairman, Rajiv Kumar, it may not continue in the future. According to him, the global slowdown is mostly due to the decline of the world's two major economies, the United States and China. Provisional data available on the NSE showed that foreign institutional investors (FIIs) net sold shares worth Rs1,967.89 crore on Tuesday, prompting some caution.

On the global front, Asian markets were trading higher as investors awaited inflation data from the United States, which could impact the rate hike pace by the Federal Reserve.

Kumud Das
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