Reversal formation may continue
As long as the index is holding 53,100 and 53,000 support zone, the reversal formation is likely to continue. Above which the chances of hitting 54,000-54,150 would turn bright. On the flip side, below 53,000 uptrend would be vulnerable
Index forms long bullish candle on daily charts
Stock Picks
- NTPC: Above Rs136 with a target of Rs140 and Stop loss of Rs133. The stock is in positive momentum and is at the support of 40 EMA.
- LTTS: Above Rs4685 with a target of Rs4775 and Stop loss of Rs4625. It has a support of 8 and 40 EMA and has given a breakout in smaller time frame.
- LTI: Above Rs6460 with a target of Rs6560 and Stop loss of Rs6380. It is at the support of 40 EMA.
- DMART: Above Rs4175 with a target of Rs4250 and Stop loss of Rs4125. It has reversed from the recent support zone.
- TATA POWER: Above Rs231 with a target of Rs240 and Stop loss of Rs223. It has reversed from the support of 8 EMA.
(Source: Capital Via)
Mumbai: The benchmark indices witnessed robust bounce back as BSE Sensex was up by 597 points. Among sectors, reality, media, PSU banks stocks bounce back sharply whereas some profit booking was seen in Metal stocks.
Technically, the index not only cleared the resistance of 15,900 points, but succeed to close above the same which is broadly positive. In addition, after a sharp decline, the index has formed promising long bullish candle that also support short term uptrend.
"We are of the view that, as long as the index is holding 53,100 and 53,000 support zone, the reversal formation is likely to continue. Above which the chances of hitting 54,000-54,150 would turn bright. On the flip side, below 53,000 level, uptrend would be vulnerable," says, Shrikant Chauhan, head (equity research-retail), Kotak Securities.
As traders picked equities at cheaper levels and brushed off the ongoing Russia-Ukraine confrontation, barometer indicators erased all of their losses and traded at the day's high points in the late afternoon session.
Traders have expressed their support for US President Joe Biden's aspirations to work with India on developing robust supply chains and promoting a transparent rules-based trade system for market economies and democracies. Sector by sector, analysts said. Steel prices will continue to rise on excellent demand and the supply chain will be disrupted by the Ukraine-Russia conflict. Since the war began in the last week of February, prices on the international market have increased by roughly $135 per tonne.
