Sensex forms small bearish candle
It also indicates indecisiveness between bulls and bears; As long as index is trading above 62,700, positive sentiment is likely to continue, above which it could rally till 63,000-63,300; On the flip side, below 62,700 selling pressure likely to accelerate, could slip till 62,400-62,300
image for illustrative purpose
Kumud Das On Monday, the benchmark indices witnessed narrow range activity, BSE Sensex was up by 240 points. Among sectors, Auto index outperformed and rallied over one percent, whereas intraday profit booking was seen in selective FMCG stocks. Technically, on the backdrop of strong global cues our market opened with a gap up, but after a promising opening entire day, the market hovered between 62,800 and 63,000pts. In addition, on daily charts, the index has formed small bearish candle, that also indicates incisiveness between the bulls and bears.
“We are of the view that, as long as the index is trading above 62,700, the positive sentiment is likely to continue,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. Above the same, the index could rally till 63,000-63,300. On the flip side, below 62,700 the selling pressure likely to accelerate. Below which, the index could slip till 62,400-62,300.
LT: Buy, CMP Rs2,269, Target Rs2,380, SL Rs2,220.
The stock is seen coming out of the consolidation phase with a range breakout. Hence, the formation indicates further uptrend from the current levels in the coming trading sessions.
ICICIBANK: Buy, CMP Rs946.65, Target Rs990, SL Rs925
From the last few sessions, the counter is stuck into a rectangle formation and trading in a range-bound move. However, the price action suggests at a likely breakout from the consolidation for fresh up move.
BRITANNIA: Buy, CMP Rs4,674, Target Rs4,900, SL Rs4,580.
On the daily scale, the stock is trading in an Ascending Triangle chart formation and a breakout from the pattern is possible in the coming session for further upward movement.
(Source: Kotak Securities)
