Uptrend formation may continue up to 61,600-62,000pts
1. CYIENT: Above Rs1,158 with a target of Rs1,169 and Stop loss of Rs1,147. The stock is in upward trending channel and has given the breakout.
2. FORTIS: Above Rs274 with a target of Rs277 and Stop loss of Rs272. It has support of 8 and 40 EMA.
3. CHALET: Above Rs256 with a target of Rs259 and Stop loss of Rs254. The stock is in upward trending channel and is on the verge of a breakout.
4. ADANIGREEN: Above Rs1,202 with a target of Rs1,214 and Stop loss of Rs1,190. It has a support of 8 EMA.
5. QUESS: Above Rs927 with a target of Rs936 and Stop loss of Rs918. It has reversed from the support of 8 EMA.
Mumbai: The market continued the bull run, in the last week the BSE Sensex gained nearly 2.5 per cent. Among Sectors, almost all major sectoral indices were in the green, but auto and PSU banks outperformed. Due to strong buying interest Nifty Auto index gained over six per cent.
Meanwhile, the Bank Nifty has formed promising breakout formation. According to the daily charts, the key support level for the Bank Nifty is placed at 38,500 followed by 38,000 points. And the structure suggests further upside if it succeed to trade above 38,000 level.
Technically, the index has formed robust breakout continuation formation on daily and weekly charts, which is largely positive. But in this month so far, the Nifty rallied nearly 2,800 points and intraday charts also indicating strong possibility of temporary weakness.
"We are of the view that, 61000 would be the trend decider level for the positional traders, above the same uptrend formation will continue up to 61600-62000," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
On the flip side, dismissal of 61000 could trigger another correction wave up to 60700-60400. Contra traders can take a long bet near 60400 with strict 60200 support stop loss, he added.