Major support at 58,000- 57,700 range

Mumbai: On Monday, the domestic stock market broke all important support levels and closed below the 58,800 level at 58,240, which is negative. The decline in the market was mainly due to external factors, which are difficult to assess in the short term. However, on the downside, the market has a major support between 58,000 and 57,700 points.

“On the upside, it will find resistance at 58,800 and 59,400 levels. Strategy to sell at 59,100 and 59,300,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Place stop loss at 59,400. On the other hand, buy positions between 58,000 and 57,700 are advised. For that keep stop loss at 57,400. We saw weakness in banks and technology stocks, particularly on the back of weakness in US markets.

Stock Picks

m TATASTEEL: Buy, CMP Rs107.05, Target Rs114, SL Rs103

The stock is into a gradual up move post its declining trend and the rising trend suggest bullish momentum to persist in the coming horizon.

m COLPAL: Buy, CMP Rs1,503, Target Rs1,580, SL Rs1,470

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.

m TECHM: Buy, CMP Rs1,134, Target Rs1,190, SL Rs1,110

After the strong opening, the stock witnessed minor correction. However, the recent bullish activity with rising volume suggest at up move to continue from current levels in the near term.

m MCDOWELL-N: Buy, CMP Rs755, Target Rs790, SL Rs740

Post short-term correction in the stock, a strong reversal formation from its multiple support zone indicates an uptrend in the coming sessions.

m ICICIGI: Buy, CMP Rs1,083, Target Rs1,140, SL Rs1,060

For the past few trading sessions, the counter is trading in a downward channel and it has entered into oversold territory. Hence, trend reversal is very likely from its support zone for a new up move.

(Source-Kotak Securities)