Apart from financials, focus on auto stocks too
The market has made a strong start to the week on the back of strong and positive domestic flows.
image for illustrative purpose
Mumbai: The market has made a strong start to the week on the back of strong and positive domestic flows. The increase in the number of IIP and the easing of CPI inflation led to a recovery in financials. The Sensex gained by more than 500 points throughout the day. It has proven to be the smartest rally after 4 days of aggregation. Based on the daily chart, Sensex is moving towards 52,500 levels with minor resistance at 52,250 level and on the downside, 51,850 and 51,200 would be the big supports.
"Our strategy is to reduce weak long positions and we need to make partial profits in positions where there are abnormal gains. Along with financials the focus should also be on auto stock," says Shrikant Chouhan, EVP, Equity Technical Research at Kotak Securities.
Stock Picks
BANKBARODA: BUY, CMP 79.55, TARGET 84, SL 77 Post correction from the highs of 89 recently stock has shown reversal from the important retracement zone on the daily chart along with various technical indicators such as RSI and MACD in buy mode.
RBLBANK: BUY, CMP 254, TARGET 267, SL 248 After taking support at 20-day SMA stock reversed sharply and it closed near the neckline of the inverse head and shoulder chart formation. Therefore, stock should resume its upward movement till its previous highs.
BERGEPAINT: BUY, CMP 764.04, TARGET 805, SL 745 Stock has formed higher high and higher low chart formation and recently after forming Doji candlestick it closed near an important retracement zone on the daily chart which indicates sustainable bullish momentum in the near term.
JUBLFOOD: BUY, CMP 2870.15, TARGET 3020, SL 2810 A breakout from inverse head and shoulder chart formation on daily chart is evident along with MACD in bullish territory suggesting an up move in near term to continue.
BATAINDIA: BUY, CMP 1553.05, TARGET 1630, SL 1520 The stock has reversed sharply after forming a double bottom chart pattern with excellent volume activity and recently a positive crossover is seen in RSI which specifies stock to rally on higher side.
(Source-Kotak Securities)
