Market Outlook: BSE Sensex likely to test 39,000-mark this month

@rex_cano

Mumbai: The markets have begun the week on a positive note, amid selective buying activity within sectors. The BSE benchmark index, the Sensex, opened with a positive gap of 130-odd points at 38,168 and rallied to a high of 38,431. The BSE index, however, pared some gains towards the close and ended at 38,182 – up 142 points.

Among the Sensex 30 stocks, Larsen & Toubro and Mahindra & Mahindra were the major gainers, both the stocks surged nearly 5 per cent each. Sun Pharma, Tech Mahindra, NTPC, SBI, ICICI Bank, Titan, Tata Steel, ITC, Kotak Mahindra Bank, HDFC and PowerGrid Corporation were the other significant gainers, up 1-3 per cent each. On the flip side, Reliance Industries, Maruti Suzuki, Asian Paints and Bajaj Finserv were the notable losers, down over a per cent each.

With today’s high at 38,431, the BSE Sensex has given a minor buy signal on the monthly Fibonacci chart. As per the monthly charts, the BSE index is now likely to journey towards the 39,000-mark during the course of the month. On the downside, the BSE index may seek support around 37,600-odd level.

Also Read: Weekly Outlook: Nifty may consolidate; multiple support levels augur well for the bulls

As per the daily Fibonacci charts, on Tuesday, in case of an up move the BSE Sensex is likely to face resistance around 38,320-38,360-38,400, and in case of a down move, the BSE index may seek support around 37,045-38,000-37,960.

At today’s high point of 11,337, the NSE Nifty came within striking distance of its recent peak at 11,341. The Nifty, however, eventually ended with a modest gain of 0.5 per cent at 11,270. The bias for the NSE index remains positive, as the index trades firmly above multiple support levels.

On the upside, the NSE Nifty may test 11,500-level during the course of the month. In case of a down side, the NSE index is likely to get considerable support in the 11,150-11,050 range.

Among the key momentum oscillators on the daily charts, the Slow Stochastic and the DI (Directional Index) are clearly in favour of the bulls. The MACD (Moving Average Convergence Divergence) is somewhat inconclusive, while the 14-day RSI (Relative Strength Index) is in the neutral zone.

Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.