Mkt may consolidate in 59,300-59,800 range

Mumbai: The benchmark indices continued the positive momentum for three days in a row. The BSE Sensex gained by 695 points. Almost all the major sectoral indices were traded in the green. But PSU banks outperformed, rallied 3.5 percent.

Technically, on intraday charts the index consistently forming higher high and higher low formation which supports further uptrend. In last three trading session, the Sensex rallied nearly 2,400 points.

"We are of the view that, the texture of the market is bullish, but due to temporary overbought situation, market may consolidate within the range of 59,300 to 59,800," says Shrikant Chauhan, head (equity research-retail), Kotak Securities.

For the day traders, the support has shifted to 59,800 from 59,000. Above which, the Sensex could rally up to 59,800. Further upside may also continue which could lift the index till 60,100. On the other hand, below 59,800 one quick intraday correction till 59,300-59,200 is not ruled out, he added.

Stock Picks

♦ JINDALSTEEL: Buy above Rs419 with a target of Rs452 and Stop loss of Rs406. It is sustaining above 5 EMA and 26 EMA

♦ PNB: Buy above Rs43 with a target of Rs47 and Stop loss of Rs41. It has flag pattern in its daily chart

♦ NMDC: Buy above Rs155 with a target of Rs175 and stop loss Rs140. it has sideways channel in its weekly chart

♦ PEL: Buy above Rs2,560 with a target of Rs2,499 and stop loss of Rs2,750. Expecting falling channel breakout

♦ MUTHOOTFIN: Buy above Rs1,502 with a target of Rs1,560 and stop loss of Rs1,460. It has taken support from bottom and rectangular channel pattern

(Source: CapitalVia)