Trade with bulls

The market opened up with a gap of around 100 points and picked up from where it had left last Friday. With bulls dominating the opening session the short-term traders are trading with a positive frame of mind. As KST in the hourly chart shows a clear buy signal, we expect further buying in the second half of the trading session
as bears are likely go for short covering. The market breadth is indicating a positive bias with 1,515 advances and 587 declines. The index is likely to have strong
support around 14358 level, which was Friday’s close, and on breaching this level it is likely to take support around 14101, which is 100-hour moving average. The index is
likely to have resistance around 14600 level, which is our medium-term target, and on breaching this level it is likely to touch an all-time high of 14724. Our short-term bias is
positive with the target of 14400 already achieved and upgraded to 14600. Our medium-term bias is positive with target raised from 14600 to 14700.

We have a positive bias on Bombay Dyeing as it has strong support around Rs566, which is around 10-day moving average, and resistance around Rs769-781 levels. We have a positive bias on Canara Bank, which is having resistance around Rs261-265 levels and support around Rs252 level. We have a positive bias on REL with support around Rs552 level and resistance around Rs569-576 levels.