Time to focus on financial stocks
u JINDAL STEEL_Above 290 with a target of 297 and Stop loss of 283. It is trading in an upward trending channel.
u Bharat Forge_Above 555 with a target of 564 and Stop loss of 540. It has a support of 21 and 40 DMA.
u GRASIM_Above 970 with a target of 985 and Stop loss of 960. It has given a major level breakout and is expected to further continue the rally.
u AARTI IND_Above 1290 with a target of 1305 and Stop loss of 1280. It is trading in an upward trending channel.
u CUMMINS_Above 616.50 with a target of 635 and Stop loss of 600. It has formed a support of 21 DMA and has reversed from the same.
Mumbai: Selectively the market is doing exceptionally well. However, one cannot forget that the market is witnessing round of profit-taking after a specific interval. Today, the market faced a similar sort of activity of profit-taking as it did on the last Wednesday.
On an intraday basis, the Sensex dropped to 47,594. However, due to unusual strength in Metals and Technology, the market moved higher and closed at the highest point of the day. TCS and Tata Steel remained performers of the day. In the second half of the trading sessions, we saw some buying and recovery in Banks and in NBFCs.
Sensex has formed a Hanging Man formation on a daily chart, which suggests indecisiveness of the market. However, due to excessive strength in the market, they are acting as a bullish continuation formation. It is advisable to take some profit on long positions around the given levels. "On the other side, 47,950 would be a major support for the BSE Sensex. A close above the level of 48,200 would be positive for the market. "On Tuesday, the focus should be on financial stocks," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
Overall, the global markets also opened higher on the hope of vaccine rollout. "The uptrend is likely to continue as investor sentiments remain positive," said Ashis Biswas, Head of Technical Research at CapitalVia.