Keep your focus on metals, insurance and pharma cos
The market has broken all important levels in the current week and closed almost at the highest point of the week.
Sensex trading in narrow range
Stock Picks
l AUROPHARMA - Above 955 with a target of 970 and Stop loss of 943. 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 AUBANK - Above 1000 with a target of 1020 and Stop loss of 980. It is an upward trending channel and on the verge of a breakout.
l JINDALSTEL - Above 301 with a target of 309 and Stop loss of 293. It has a support of 8 and 40 DMA.
l KOTKABANK - Above 2030 with a target of 2070 and Stop loss of 1995. It has reversed from the support of 8 and 40 EMA.
(Source-CapitalVia)
Mumbai: The market has broken all important levels in the current week and closed almost at the highest point of the week. The announcements from the Union Budget 2021 has helped the market to move higher despite a sudden rise in Crude prices and Jump in the dollar index. FIIs turned net buyer during the week and bought over Rs12,000 crores in the cash segment.
Specific announcements in the Union Budget has sparked a rally in PSU banks, SBI closed 10 per cent higher from the previous close, which is record-breaking close for the stock.
As the major events like the Union Budget and the Credit policy are unfolding, also the season of quarterly results in almost over, we could see some sideways activity in the market. We need to be stock specific or buying should be done only at major large supports.
In the coming week, earlier crucial resistance 49,750 levels, would act as a major support for the market. In the worst-case scenario, we might see the levels of 49,000. On the higher side, 51500 and 52000 would be major hurdles for the Sensex. "The focus should be on Metals, Insurance and Pharmaceutical companies," says Shrikant Chouhan, EVP, head of fundamental research at Kotak Securities.
