The market continued to trade higher for the second consecutive session on Tuesday, driven by select banking & financial services, oil & gas, FMCG and metal stocks, even as investors remain cautious tracking March quarter numbers and economic indicators which are not showing an upbeat picture of growth and corporate earnings.
BSE Sensex closed 75 points, or 0.12 per cent, higher at 60,130.71 while the Nifty closed at 17,769.25, up 26 points, or 0.15 per cent.
Bank Nifty ended at 42,678.50 up by 42.75 points or 0.10%.
Market sentiment remains cautious amid persisting concerns over rate hikes, its impact on economic growth and shrinking corporate profitability.
On Wednesday, a host of major companies such as Maruti Suzuki, Bajaj Finance, SBI Life, HDFC Life, and Indus Towers among others will be presenting their Q4 numbers. While on Thursday, IT majors Tech Mahindra, Wipro, along with FMCG Hindustan Unilever and other are set to announce their earnings.
Day trade guide by Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher for Wednesday’s session:
She said, Nifty continued with the upward move in the morning session but witnessed some resistance near the crucial zone of 17800 levels and with some profit booking activity closed marginally in the green near 17750 zone.
“With the overall bias and sentiment maintained positive, the index needs to breach decisively the 17800 zone for further continuation of the upward move with next targets expected near 18200-18300 zone. BankNifty also witnessed a barrier near 42850 levels halting the upward journey but maintaining the positive trend and bias thereby anticipating for further gains in the coming days. The near-term support is maintained strong near 42000 zone and upside near term target is set near 43600-43700 levels. The support for the day is seen at 17650 levels while the resistance is seen at 17900 levels. BankNifty would have the daily range of 42300-43200 levels,” she added.
Parekh recommends buying the following stocks:
Buy BSE LTD at 494 with a stop loss 530 and a target price of 480
Buy RCF at 107 with a stop loss 115 and target price of 104
Buy L&T at 2247 with a stop loss 2215 and target 2330
Nifty Spot Index
Support – 17650/17600
Resistance – 17900/17950
Bank Nifty Spot Index
Support – 42300/42250
Resistance – 43200/43250
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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