Keep a strategy of buying on dips
Mumbai: In contrast to Monday's trade, the market on Tuesday sustained after the initial round of profit-taking and quickly reversed back to 52,700 level, which is an ultimate resistance for the market.
Aided by sharp gains in financials, the market managed to close above the levels of 52,700 points. It's a bullish continuation pattern and with the help of it, the BSE Sensex would again hit the 53,000/53100 levels. On a daily basis, 10 and 20 days SMA offered significant support to the short-term trend of the market that would act as the final stop loss for holding any long positions. On Wednesday 53,000/53,100 would be major hurdles and support would be at 52,500 and 52,400 levels. Keep a strategy of buying on dips," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
- FINCABLES: Above Rs552 with a target of Rs580 and Stop loss of Rs525. It is trading in a Strong uptrend and has given a breakout.
- HDFCBANK: Above Rs1,506 with a target of Rs1,530 and Stop loss of Rs1,484. It has support of 8 and 40 EMA
- BAJAJHLDNG: Above Rs3,940 with a target of Rs3,990 and Stop loss of Rs3,895. The stock is in upward trending channel and is on the verge of a breakout.
- AARTIIND: Above Rs862 with a target of Rs877 and Stop loss of Rs847.50. It has a support of 8 EMA.
- CASTROLIND: Above Rs145 with a target of Rs148.50 and Stop loss of Rs142. It has reversed from the support of 8 EMA.