Sensex rallies over 100 points; top ten stocks in focus
New Delhi – The S&P BSE Sensex which was trading in a narrow range on Monday, picked up momentum in mid-morning trade and rallied over 100 points, led by gains in TCS, Wipro, ITC, HDFC Bank and ICICI Bank.
Tracking the momentum, the 50-share Nifty index also surged past its crucial psychological level of 6300, boosted by gains in IT, banks, realty and capital goods stocks.
At 10:20 a.m.; the 30-share index was at 21,176.15, up 123 points or 0.58 per cent. It touched a high of 21,201.52 and a low of 21,001.13 in early trade today.
The Nifty was at 6,299, up 38 points or 0.6 per cent. It touched a high of 6,304.05 and a low of 6,243.35 in trade today.
“The Nifty is expected to trend up till 6300 in the next couple of days. In this period the key support will be at 6234 and resistance will be at 6300,” said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.
“The Nifty has taken support around the previous swing low and started forming higher tops and higher bottoms on the daily chart. The short-term bias remains positive for a target of 6415 with reversal at 6234,” he added.
Mehta is of the view that if the Nifty starts trading below 6234 then the bias would change to negative. The medium-term outlook remains positive as the index has been trading above the 20-weekly moving average (WMA) and the 40-WMA, ie 6105 and 5995 respectively, and been forming higher tops and higher bottoms on the weekly chart.