Further uptrend possible from current levels
For now, 62,800 level would act as a sacrosanct support level, above this, it could retest 63,500-63,700 level; On other side, below 62,800pts traders may prefer to exit out from the trading long positions
image for illustrative purpose
On last Monday, the benchmark indices witnessed profit booking at current levels, BSE Sensex was down by 416 points. Among sectors, PSU Banks index rallied over one per cent, while Media index shed nearly one per cent.
Technically, after a strong opening the market consistently faced selling pressure at higher levels. However, the short-term formation is still in to the positive side.
“On intraday charts, the index is holding higher high and higher low series formation, which supports further uptrend from the current levels,” says Shrikant Chouhan, head (equity research-retail), Kotak Securities.
For the traders now, 62,800 level would act as a sacrosanct support level. As long as the index is trading above the same, the positive sentiment is likely to continue. Above the same, the market could retest the level of 63,500-63,700. On the other side, below 62,800pts traders may prefer to exit out from the trading long positions. Below the same, the index could slip till 62,750-62,600.
Vinod Nair, head (research), Geojit Financial Services, said: “Indian equities shied away from closing at all-time high levels amid profit booking, primarily driven by private banks. Global markets also took a breather after a strong rally last week as investors looked forward to China’s rate decision and the Fed chair’s testimony. The Indian rupee has been exhibiting strength recently, supported by strong FII inflows and favourable domestic macroeconomic data.”
STOCK PICKS
1. TECHM: BUY, CMP Rs1,093.45, Target Rs1,150, SL Rs1070.
The stock is seen coming out of the consolidation phase with a range breakout, and hence the formation indicates further uptrend from the current levels in the coming trading sessions.
2. TATACHEM: BUY, CMP Rs977.85, Target Rs1025, SL Rs955.
On the daily scale, the counter has given a breakout of its triangle chart pattern, which indicates further bullish momentum in the near term.
3. SRF: BUY, CMP Rs2,406, Target Rs2,530, SL Rs2,355.
The stock has formed a rounding bottom chart pattern post reversal from its support zone, the bullish momentum is indicating resumption of an uptrend rally from the current levels.
(Source: Kotak Securities)
