The much-warranted market pull back was seen on August 6 after a sharp sell-off in last few sessions. The optimism about a likely rate cut by Reserve Bank of India's Monetary Policy Committee on August 7 and short covering lifted benchmark indices.
The BSE Sensex climbed 277.01 points to 36,976.85, while the Nifty50 rallied 85.70 points to 10,948.30 and formed strong bullish candle which resembles a Bullish Engulfing kind of pattern on daily charts after a Hammer pattern formation in previous session.
All sectoral indices (except IT) participated in the rally with bank, auto, metal gaining more than 1 percent. The broader markets outperformed frontliners as the Nifty Midcap index gained 2 percent and Smallcap index rose 1.8 percent.
Close
According to pivot charts, the key support level is placed at 10,835.17, followed by 10,722.13. If the index starts moving upward, the key resistance levels to watch out for are 11,039.87 and 11,131.53.
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The Nifty Bank closed at 28,022.10, up by 374.05 points on August 6. The important pivot level, which will act as crucial support for the index, is placed at 27,634.53, followed by 27,246.97. On the upside, key resistance levels are placed at 28,279.03 and 28,535.97.
In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns:
Ashwani Gujral of ashwanigujral.com
Buy Asian Paints with a stop loss of Rs 1545, target of Rs 1600
Buy Pidilite Industries with a stop loss of Rs 1290, target of Rs 1340
Buy Voltas with a stop loss of Rs 610, target of Rs 635
Buy Tata Global Beverage with a stop loss of Rs 265, target of Rs 282
Buy Bata India with a stop loss of Rs 1390, target of Rs 1450
Sudarshan Sukhani of s2analytics.com
Buy Larsen & Toubro with stop loss at Rs 1365 and target of Rs 1400
Buy Mindtree with stop loss at Rs 704 and target of Rs 729
Buy Manappuram Finance with stop loss at Rs 113 and target of Rs 127
Sell Arvind with stop loss at Rs 56 and target of Rs 51
Mitessh Thakkar of mitesshthakkar.com
Buy Bajaj Finance with a stop loss of Rs 3230 and target of Rs 3355
Buy Escorts above Rs 479 with stop loss of 472.5 and target of Rs 493
Buy Pidilite Industries with a stop loss of Rs 1288 and target of Rs 1350
Buy Berger Paints with a stop loss of Rs 339 and target of Rs 360
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com/CNBC-TV18 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.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more. First Published on Aug 7, 2019 08:29 am