The market opened flat but an afternoon rally helped it gain for the second consecutive session on November 27, forming bullish candle on the daily charts.
The rally was largely driven by index heavyweights Reliance Industries (up 1.66 percent), HDFC Bank (0.7 percent), HDFC (0.9 percent), Infosys (2.81 percent) and TCS (2.39 percent).
The 30-share BSE Sensex was up 159.06 points at 35,513.14 while the 50-share NSE Nifty closed 57 points higher at 10,685.60 and is now comfortably above its crucial short-term moving averages.
"Nifty index finally negated its lower highs-lower lows formation after four trading sessions and continued its positive momentum. It formed a bullish candle on a daily scale which suggests that bulls are not loosening their grip in the market," Chandan Taparia, Associate Vice President | Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.
India VIX fell sharply by 10.94 percent to 18.17 levels. Sudden fall in VIX might provide short term stability in the market.
According to Pivot charts, the key support level is placed at 10,622.87, followed by 10,560.13. If the index starts moving upwards, key resistance levels to watch out are 10,721.77 and then 10,757.93.
The Nifty Bank index closed at 26,443.10, up 77.50 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,310.8, followed by 26,178.5. On the upside, key resistance levels are placed at 26,533.3, followed by 26,623.5.
Here are the top stock trading ideas which can give good returns in the near term:
Shitij Gandhi of SMC Global Securities
Buy State Bank of India with target at Rs 305 and stop loss at Rs 272
Buy PVR with target at Rs 1550 and stop loss at Rs 1350
Buy Cummins India with target at Rs 870 and stop loss at Rs 750
Rajesh Agarwal of AUM Capital
Buy Aptech with stop loss at Rs 165 and target of Rs 183
Buy VIP Industries with stop loss at Rs 508 and target of Rs 550
Buy Zydus Wellness with stop loss at Rs 1198 and target of Rs 1249
Buy Birla Cable with stop loss at Rs 210 and target of Rs 235
Sell Lupin with stop loss at Rs 862 and target of Rs 830Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.