Book profit on long positions
image for illustrative purpose
Mumbai The domestic stock market on Monday unexpectedly closed much better. Initially, the market went down to Friday's lowest level, however, it was only for a short time and the market bounced back soon. This shows that the market is under the control of the bulls. Market giants Reliance, ITC, TATA STEEL, ICICI Bank and HDFC twins all helped the market close higher. The 52,000 level is the crucial resistance level for the market, however, earlier resistance of 50,500 and 50,200 levels would act as major support for the market. A close below the level of 52,000 would keep the market range bound between 52,000 and 50,200 levels.
"One should book profit on long positions if the market moves towards, 52,000/52,300 levels. Buying is advisable only at major supports like 50,500/50,400 levels," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
Stock Picks
- MARUTI - Above Rs7,075 with a target of Rs7290 and Stop loss of Rs6935. It is trading in a Strong uptrend and is on the verge of a fresh breakout.
- DIVISLAB - Above Rs4,185 with a target of Rs4,310 and Stop loss of Rs4,100. The short-term moving averages like 8EMA and 20SEMA are showing a strong uptrend.
- HINDALCO - Above Rs395 with a target of Rs410 and Stop loss of Rs385. The stock is in upward trend and is on the verge of a breakout.
- ITC - Above Rs220 with a target of Rs230 and Stop loss of Rs215. It has a support of 8 and 40 EMA.
- Dr Reddy's Lab - Above Rs5,300 with a target of 5459 and Stop loss of 5190. It has bounced back from the support of 8 EMA.
(Source-CapitalVia)
