Index may take a temporary pause near 51,300 levels
l ALKEM - Above 3,000 with a target of 3050 and Stop loss of 2950. It has reversed from the support of upward trending line.
l CUMMINS - Above 800 with a target of 820 and Stop loss of 780. It is an upward trending channel and on the verge of a breakout.
l BBTC - Above 1,290 with a target of 1,325 and Stop loss of 1260. . It has reversed from the support of 8 AND 40 EMA.
l GODREJCP - Above 773 with a target of 781 and Stop loss of 765. It has a support of 8 and 40 DMA.
l GUJGASLTD - Above 386 with a target of 397 and Stop loss of 375.5. It has reversed from the support of 8 and 40 EMA.
Mumbai: The Budget rally continues for the fourth consecutive session. The Sensex gained over 358 points. Today, after a muted opening, the Sensex witnessed narrow range activity. However, in the late morning once again bulls took the charge near 50,000 levels and due to strong buying interest the index rallied over 650 points from its low.
"The intra-day rally was largely supported by the PSU Banks, Oil & Gas and FMCG stocks. We are of the view that, the larger texture of the market is positive but intra-day chart suggest the index may take a temporary pause near 51,300 levels," Shrikant Chouhan, EVP (equity technical research), Kotak Securities said. Technically, post strong uptrend rally, the index has formed breakout continuation formation near important resistance level.
The texture of the charts clearly suggest the short term trend is still up, but strong possibility of intraday correction is not ruled out if the index trade below 50,425. For the trend following traders 50,425 should be the sacrosanct level to watch. Trading below the same we can expect quick correction up to 50,000-49,810. On the flip side, 50,800 would be the immediate hurdle for the day traders, above the same we could expect further uptrend till 51,300-51,650.