Technical View: Optimism to continue in mkt

The 30-share benchmark after witnessing a huge gain of around 700 points on Monday (December 24), today opened firm at 19,940.96 led by global cues. It continued to trade strong throughout the day. Heavy buying interest was seen in frontline stocks. Metal, capital goods and realty sector traded well. Finally the index touched an intraday high of 20,211.47 to end the day on a cheerful note.

BSE Sensex gained 338.40 points, or 1.70%, to close at 20,192.52, while the broad-based NSE Nifty closed at 6,070.75, up 85.65 points, or 1.43%.

Commenting on this upbeat mood Suresh Iyer, technical analyst, Asit c Mehta said, ``I am bullish on the market in the coming days and on Thursday we can see the same optimism in the market, the F&O expiry should also close positively.``

He added, ``On Wednesday, Nifty closed at 6,070. Now from this level it can go up to 6,109 on Thursday and if it crosses this mark then the next immediate target will be 6,160 - 6,172.`` He added, ``On Thursday Sensex can touch 20,320 and if it crosses 20,320 mark than the next target will be 20,528.``

Stock Recommendation:

Suresh has recommended Titan, Kotak Mahindra Bank, SBI in addition to TISCO, RIL and ONGC for Thursdays trading. He has also recommended Bhart Forge with a stop loss of Rs 341 and JP Associates, in which investors can go long.

Technical analyst Vishwas Agarwal said, ``BSE is already up by 1,200 points from the recent low that may now attract some volatility. However overall mode of the market is strong until market is above 19,888,`` adding, ``midcap stocks will continue to outperform.``

He said, ``If Sensex maintains above 19,950 than it can touch 20,222 and if it crosses this than we can see more upside. Reliance Industries can also touch Rs 3,000 mark in the coming few sessions which will give new boost to the market, however Index short covering will also come by that point.``

For the first month of the new year Vishwas said, ``January is a result session and also FII allocation for India will be announced. These two events will help in deciding the next move of the market.``

Stock Reccomendation:
Vishwas has recommended Sasken, Tata Chemicals, Ranbaxy, Tata Motors, Bharat forge, Canara Bank, PFC, Moser Baer, Parsavnath and core projects for the next 10-12 trading sessions with some stoploss.