Charts indicate further uptrend from the current levels
On Monday, the benchmark indices resumed positive momentum; the Sensex was up by 492 points. Among Sectors, Metal and Energy stocks gained the most while PSU Banks witnessed profit booking at higher levels.
image for illustrative purpose
Mumbai: On Monday, the benchmark indices resumed positive momentum; the Sensex was up by 492 points. Among Sectors, Metal and Energy stocks gained the most while PSU Banks witnessed profit booking at higher levels.
"Technically, after a muted opening, the market successfully cleared the short term resistance of 58,700 which is broadly positive," says Shrikant Chouhan of Kotak Equity Securities.
Bullish candle on daily charts and intraday breakout formation indicates further uptrend from the current levels.
For the trend following traders now, 58500 would be the key support level. Above which, the breakout formation is likely to continue till next level. On the flip side, below 58,350-58,500 the index could slip till 58250-58100.
Stock Picks
HCLTECH: BUY, CMP Rs966.05, TARGET Rs1015, SL Rs945. The counter is into a rising channel pattern on the daily chart. Furthermore, it is trading in a Symmetrical triangle chart pattern. Hence, breakout from the formation is very likely in the coming sessions for fresh up move.
L&TFH: BUY, CMP Rs74.7, TARGET Rs79, SL Rs72. On the weekly scale, the counter is forming a higher high and higher low series pattern, the rising trend suggest bullish momentum to continue from the current levels.
HDFCAMC: BUY, CMP Rs2004.7, TARGET Rs2110, SL Rs1960. For the past few sessions, the counter is trading in a range-bound mode. However, the recent bullish activity near the upper boundary of the range suggests a strong up move in the coming horizon.NAUKRI: BUY, CMP Rs4266.8, TARGET Rs4480, SL Rs4180. A Flag chart formation after the sharp up move is formed and post consolidation the breakout is very likely in the near term for a new leg of the bullish trend.
DIVISLAB: BUY, CMP Rs3937.6, TARGET Rs4140, SL Rs3850. The counter is into a rising channel formation on the daily scale, and it took support at the ascending trend line for bullish continuation formation in the coming horizon.
(Source-Kush Ghodasara)
