Markets may remain volatile
Strong possibility of quick intraday correction below 56,850; Below 55,850, Sensex could retest 55,540 & 55,300
Quick intraday relief rally likely
Stock Picks
- INDIAN BANK: Above Rs155 with a target of Rs160 and Stop loss of Rs152. The stock is in positive momentum and is at the support of 40 EMA
- VTL: Above Rs910 with a target of Rs945 and Stop loss of Rs890. It has a support of 8 EMA and has given a breakout in smaller time frame
- PRAJIND: Above Rs385 with a target of Rs395 and Stop loss of Rs375. It is at the support of 8 and 40 EMA
- KAJARIA: Above Rs995 with a target of Rs1015 and Stop loss of Rs980. It has reversed from the recent support zone
- TATA CONSUMER: Above Rs730 with a target of Rs750 and Stop loss of Rs720. It has reversed from the support of 8 EMA
(Source: Capital Via)
For the bulls, immediate hurdle would be 56,850 or 200 Day SMA. On the flip side below strong possibility of quick intraday correction is not ruled out; Investors are advised to take new position only after things get cleared out and keep strict stop losses to positions
Mumbai: The benchmark indices continued the positive momentum 5th day in a row. The BSE Sensex was up by 935 points. On Monday, the market opened with a positive note and successfully clears the short-term resistance of 55,850. Post intraday breakout, it intensified the momentum. Among sectors banking and financials stock outperformed, rallied over two per cent, whereas some profit booking was seen in realty and metal stocks.
Technically, after a long time, the Nifty succeed to close above 20-Day SMA. It also formed bullish candle on the daily chart. We are of the view that as long as Nifty trading above 55,850 the uptrend texture will continue in the near future.
"For the bulls, immediate hurdle would be 56,850 or 200 Day SMA. On the flip side below, strong possibility of quick intraday correction is not ruled out," says Shrikant Chauhan, head of equity research (retail), Kotak Securities. Below 55,850 Sensex could retest 55,540 and 55,300, he added.
"Markets are expected to remain volatile this week mainly driven by US Federal Reserve's interest rate decision and the release of domestic inflation data. Also, despite talks between Russia and Ukraine tensions still persists," says Rahul Sharma of Equity 99.
The date of LIC's IPO will also be key factor in determining the direction of markets in coming days. Investors are advised to take new position only after things get cleared out and keep strict stop losses to positions.
