Nifty forms strong bullish breakout candle

Stock Picks

- LTTS: Above Rs4,794 with a target of Rs4,940 and Stop loss of Rs4,650. The stock is in upward trending channel and has given the breakout.

- BAJAJ AUTO: Above Rs3,820 with a target of Rs3,885 and Stop loss of Rs3,757. It has support of 8 and 40 EMA.

- HCLTECH: Above Rs1,336 with a target of Rs1,360 and Stop loss of Rs1,313. The stock is in upward trending channel and is on the verge of a breakout.

- RELIANCE: Above Rs2,497 with a target of Rs2,550 and Stop loss of Rs2,445. It has a support of 8 EMA.

- CIPLA: Above Rs970 with a target of Rs985 and Stop loss of Rs960. It has reversed from the support of 8 EMA.

(Source-CapitalVia)

Mumbai: Bulls are in total control, the benchmark index BSE Sensex hits a fresh all time high of 59,957.25 points. On Thursday, due to strong global cues the NSE Nifty opened with a gap of 430 points and maintained intensified momentum throughout the day. Among sectors, the reality sectors witnessed exceptional rally, gained over 8.5 per cent. Whereas despite strong market conditions some profit booking was seen media and selective FMCG stocks.

Technically, on short term time frame, the index has formed strong bullish breakout candle and at the same time, on intraday charts, the index consistently maintained higher bottom series formation which support further uptrend from current levels.

The short-term trend is extremely strong and will continue in the near future. For the day traders, 59,800-59,600-59,450 range would be the key support level. On the flip side, 60,000-60,200-60,350 could act as a major resistance level in the short run.

"We are of the view that, buying on intraday corrections and sell on rallies would be the idea strategy for the traders. Contra traders can take a long bet between 59,600-59,450 with a strict 59,300 support stop loss.," says Shrikant Chouhan, head of equity research (Retail), Kotak Securities.