Trade Nivesh | The stock market continues to boom. Major indices are at peak levels. On the basis of technical signals, the market will continue to boom. Based on the daily charts of 30 October, the Sensex had formed a 'Golden Cross' shape, which is pointing to the continuation of the boom. The Sensex reached the top level on this day.
The Golden Cross is a strong technical signal, indicating that bulls are dominating the market. Under this, the normal trading average of short duration (50 sessions) goes above the normal trading average of long term (200 sessions).
The 30-share Sensex has an average of 50 trading sessions at 39,878. While the average of 200 trading sessions is close to 38,859. The Sensex closed on a new peak on Monday. Analysts believe that the index could grow by 5–16 per cent in the next 6 to 12 months. Investment Advisor
According to Sahil Kapoor, chief market strategist and assistant director of Edelweiss, the Sensex could reach between 46,000 and 47,000 by June 2020. According to G Chokkalingam of Equinomics Research and Advisory, by March 2020, the Sensex may register a 5 to 8 per cent rise.
The NSE Nifty 50 index is also seen making 'Golden Cross'. According to Nirav Chheda, Senior Technical Analyst, Nirmal Bang, "The upper and lower levels are steadily rising. The average of 50 sessions stands on the verge of rising above the average of 200 sessions."
Naveen Kulkarni, head of research, Reliance Securities, said that the index will only grow from here and may reach 12,800 by April 2020. Golden cross is seen in many stocks on the index. These stocks are also showing signs of rising.
These include Larsen & Toubro, Ajanta Pharma, Dr. Reddy's Labs, Ramco Cements, Divis Labs, Reliance Industries, Avanti Feeds, Tata Consultancy Services, Hero MotoCorp, HDFC, SJVN, Gulf Oil and Adani Ports. Golden Cross is seen forming in more than 100 stocks on the BSE 500 index.
Among the Sensex stocks, analysts are positive on Larsen & Toubro, which represents the Golden Cross. The company earned a net profit of Rs 2,770.43 crore in the September quarter, up 6.83 percent from a year earlier.
Morgan Stanley has given a target price of Rs 1,753 crore to the stock. Whereas CLSA believes that this stock can reach Rs 1,730. According to brokerage firm Macquarie, investing in this stock in a volatile market can benefit. But this year the stock has gained only 0.73 per cent.
Global brokerage firms do not see much confidence in Hero MotoCorp. CLSA has advised to sell this stock. While Macquarie has taken a 'neutral' stance towards this stock. According to the brokerage, the change in BS-VI can be challenging for the company.
Dr. Reddy's Labs has jumped 17 percent in the last one year. The company earned a net profit of Rs 1,093 crore in the September quarter, compared to Rs 504 crore a year earlier. Credit Suisse has given a target price of Rs 3,055, which is about 9 per cent above the current prices.
The Golden Cross is a strong technical signal, indicating that bulls are dominating the market. Under this, the normal trading average of short duration (50 sessions) goes above the normal trading average of long term (200 sessions).
The 30-share Sensex has an average of 50 trading sessions at 39,878. While the average of 200 trading sessions is close to 38,859. The Sensex closed on a new peak on Monday. Analysts believe that the index could grow by 5–16 per cent in the next 6 to 12 months. Investment Advisor
According to Sahil Kapoor, chief market strategist and assistant director of Edelweiss, the Sensex could reach between 46,000 and 47,000 by June 2020. According to G Chokkalingam of Equinomics Research and Advisory, by March 2020, the Sensex may register a 5 to 8 per cent rise.
The NSE Nifty 50 index is also seen making 'Golden Cross'. According to Nirav Chheda, Senior Technical Analyst, Nirmal Bang, "The upper and lower levels are steadily rising. The average of 50 sessions stands on the verge of rising above the average of 200 sessions."
Naveen Kulkarni, head of research, Reliance Securities, said that the index will only grow from here and may reach 12,800 by April 2020. Golden cross is seen in many stocks on the index. These stocks are also showing signs of rising.
These include Larsen & Toubro, Ajanta Pharma, Dr. Reddy's Labs, Ramco Cements, Divis Labs, Reliance Industries, Avanti Feeds, Tata Consultancy Services, Hero MotoCorp, HDFC, SJVN, Gulf Oil and Adani Ports. Golden Cross is seen forming in more than 100 stocks on the BSE 500 index.
Among the Sensex stocks, analysts are positive on Larsen & Toubro, which represents the Golden Cross. The company earned a net profit of Rs 2,770.43 crore in the September quarter, up 6.83 percent from a year earlier.
Morgan Stanley has given a target price of Rs 1,753 crore to the stock. Whereas CLSA believes that this stock can reach Rs 1,730. According to brokerage firm Macquarie, investing in this stock in a volatile market can benefit. But this year the stock has gained only 0.73 per cent.
Global brokerage firms do not see much confidence in Hero MotoCorp. CLSA has advised to sell this stock. While Macquarie has taken a 'neutral' stance towards this stock. According to the brokerage, the change in BS-VI can be challenging for the company.
Dr. Reddy's Labs has jumped 17 percent in the last one year. The company earned a net profit of Rs 1,093 crore in the September quarter, compared to Rs 504 crore a year earlier. Credit Suisse has given a target price of Rs 3,055, which is about 9 per cent above the current prices.
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