Given the long-term positives of the domestic market, it makes sense for investors to put money in the market on every decline with a long-term perspective.
Stocks that have witnessed upward crossover include names like L&T Finance Holding, SAIL, Reliance Capital, M&M Financial Services, NTPC and IDBI Bank.
Nifty50 broke past its crucial resistance level at 8,300 and looks poised to hit 8,500 in July, led by reforms initiated by the govt and above-normal rains.
In the process, the index formed a ‘Shooting Star’ pattern on the daily candlestick charts and a ‘bullish belt hold’ pattern on the weekly charts.
Fresh Call writing at strike price 8,700 (19.46 lakh contracts added) created a fresh resistance level for the bulls. Strike price 8,700 now holds third highest Call open interest at 27.23 lakh contracts.
Although the index formed a ‘Spinning Top’ pattern on the charts, healthy F&O rollovers pointed to a bullish bias in July series.
The mood on Dalal Street has turned positive and investors should use any volatility to raise exposure in quality largecap and midcap stocks, experts said.
Sensex rallied 600 pts in 3 sessions while Nifty rose 200 pts. The rally seen in the market was the result of a combination of short covering & fresh buying.
Global markets have recovered sharply. Most analysts say the possibility of another round of quantitative easing from the US Federal Reserve is fuelling this rally.
Fresh Put writing was seen at strike prices 8,100 (8.8 lakh contracts added), 8,150 (17.8 lakh contracts added) and 8,200 (16.9 lakh contracts added).
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