The Nifty50 after opening above psychological 11,000-mark hit a fresh five-month high following strong global cues, but saw some profit booking in later part of the session on Thursday.
The index formed a ‘Shooting Star’ kind of pattern on the daily charts. Traders turned cautious ahead of June retail inflation and May industrial output data due later in the day.
The BSE Sensex surpassed its previous life time high of 36,443 and made a new record high of 36,699 levels intraday, before ending at all-time closing high of 36,548.41 (up 282.48 points).
The Nifty50 after opening at 11,006.95 rallied 130 points to hit a fresh five-month high of 11,078.30, but traders preferred to book some profits in later part of the session. It closed 74.90 points higher at 11,023.20 and is 148 points away from its all-time high of 11,171.55 seen in January.
Some profit booking at higher levels made traders cautious about coming sessions. Hence the index needs to hold 11,000-mark for further uptrend but if it falls below that level, then there could be some selling pressure, experts said.
According to Pivot charts, the key support level is placed at 10,989.17, followed by 10,955.13. If the index starts moving upwards, key resistance levels to watch out are 11,067.77 and 11,112.33.
The Nifty Bank index closed at 27,026.55, up 210.35 points on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 26,920.2, followed by 26,813.8. On the upside, key resistance levels are placed at 27,148.9, followed by 27,271.2.
Here are the top stock trading ideas which can give good returns in the near term:
Hadrien Mendonca of IIFL
Buy Wipro with target at Rs 303 and stop loss at Rs 267
Buy Dr Reddy’s Labs with target at Rs 2,517 and stop loss at Rs 2,272
Buy Bajaj Electricals with target at Rs 611 and stop loss at Rs 536
Rajesh Agarwal of AUM Capital
Buy Century Enka with stop loss at Rs 259 and target of Rs 272
Buy Marico with stop loss at Rs 343 and target of Rs 360
Buy Bajaj Finance with stop loss at Rs 2390 and target of Rs 2450
Buy Sonata Software with stop loss at Rs 305 and target of Rs 330
Buy HDFC Bank with stop loss at Rs 2148 and target of Rs 2190