Profit booking likely in overbought zone
Below 78,600 traders may prefer to exit out from trading long positions.Above which market could move up till 79,000-79,200. On the flip side, below 78,250 uptrend would be vulnerable
image for illustrative purpose
Mumbai: On the monthly F&O expiry day, the benchmark indices witnessed a strong momentum. BSE Sensex was up by 568 points. Among sectors, IT index outperformed rallied nearly two per cent whereas despite strong momentum Media and PSU Bank indices shed over one per cent.
Technically, after a muted opening, the market took the support near 78,400 and reversed sharply. Post reversal throughout the day market held the positive momentum. In addition, bullish candle on daily charts and higher high and higher low formation on intraday charts also indicating further uptrend from the current levels.
“We are of the view that, the larger texture of the market is bullish, but due to temporary overbought conditions, we could see some profit booking at higher levels. For the breakout traders now, the 78,600 would act as a key support zone while 79,400-79,600 could be the immediate resistance zone for the bulls,” says Shrikant Chouhan, head (equity research), Kotak Securities.
For the day traders buying on intraday correction and sell on rallies would be the ideal strategy.
However, below 78,600 traders may prefer to exit out from the trading long positions, above which the market could move up till 79,000-79,200. On the flip side, below 78,250pts, the uptrend would be vulnerable.
STOCK PICKS
Havells | Buy | CMP: 1852.85 | SL: 1,815 | TARGET: 1,950
Havells has successfully tested its anchor VWAP support level of 1,850 on daily charts. The overall technical setup suggests a low-risk buying opportunity at the current levels. With the price holding steady above the support level, we can expect potential upside targets of 1,950 and above. A stop-loss should be set at 1,815.
Apollo Tyres | Buy | CMP: 517.55 | SL: 510 |
TARGET: 540
Apollo Tyres has successfully re-tested its breakout level of 515 on daily charts. The overall technical setup indicates potential upside towards 540. With the price forming higher highs and higher lows, coupled with increased trading volumes, we can expect near-term targets of 540 and above. A stop-loss should be set at 510.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/ All prices in Rs
