Stock markets likely to consolidate this week
- AU BANK above 935 with a TGT(target) of 960 and SL(stoploss) of 910. It has formed a consolidation and has the support of 8 DMA.
- BPCL above 408 with a TGT of 420 and SL of 398. It has a support of 8 and 40 DMA.
- Muthoot Finance above 1200 with a TGT of 1220 and SL of 1180. It has formed support of 21 and 55 DMA
- SRT TRANSFIN above 1146 with a TGT of 1160 and SL of 1135. It has a support of 21 and 55 DMA.
- TRENT above 708 with a TGT of 725 and SL of 692. It has a support of trendline and has reversed from the same.
Mumbai: Indian equities opened higher on Monday but witness some profit booking at higher levels as WPI inflation in November rose to 1.55 per cent from 1.48 per cent MoM.
Finally, Sensex closed at 46,253 levels or 0.34 per cent higher. Oil company stocks like ONGC, IOC, BPCL gained momentum on news of BPCL disinvestment on December 15, 2020 after receiving three bids, also crude and oil sales recovered. Burger King debuted with upper circuit on the first day of Listing.
However, downside was capped as IIP grew at an eight-month high of 3.6 per cent in October, Economic indicators have begun to look encouraging and the recovery is going to be 'faster than expected', said Prime Minister Narendra Modi. Finance Minister approves Rs 9,879 cr capital expenditure proposal of 27 states.
"Markets on Tuesday to open on positive note. Investors would eye the outcome of BPCL Stake Sale of more than 51 per cent to one of the three Bidders," says Nilesh Karani, VP, Magnum.
Sensex is expected to be in a consolidation mode. It will witness an uptrend if it sustains above 46,650 mark for target of 46,720-750 levels and next 46,800-820 levels and next 46,880-930 levels. If Sensex sustains above 46,950 level than it could see further up trend for a target of 47,150-200 levels.
On the flipside, Sensex would see immediate support near 46450 levels, sustaining below can witness selling with support near 46150-200 levels and next near 46K mark. However, If Sensex slides below 45,950, it could witness more selling pressure for target of 45650-700 levels with intermediate support at 45,800-40 levels.