Non-directional activity may continue
On Monday, the benchmark indices witnessed lackluster activity as BSE Sensex was down by 335 points
image for illustrative purpose
Mumbai: On Monday, the benchmark indices witnessed lackluster activity as BSE Sensex was down by 335 points. Among sectors, selling pressure was seen in metal stocks as a result Metal index shed over two per cent.
Technically, after a last Friday strong pullback the market witnessed profit booking at higher levels. Post weak opening entire day market hovered between 60,350-60,850 price range. On daily charts it has formed small inside body bearish candle which indicating continuation of non-directional activity in the near future.
"For the traders now, the 60,300 would be key support level, below the same the index could slip till 60,000-59,800," says Shrikant Chauhan of Kotak Securities.
On the flip side, fresh uptrend rally possible only after dismissal of 60,850. Above which, the index could rally till 61,200-61,400.
Stock Picks
HCLTECH: Buy, CMP Rs1,145, Target Rs1,200, SL Rs1,120
On the weekly time frame, the counter has formed a Cup and Handle chart pattern and the structure indicates breakout from resistance zone in the near term for fresh up move.
BPCL: Buy, CMP Rs333.8, Target Rs350, SL Rs325
The stock has reversed from its support zone and it has formed a strong bullish candlestick pattern. The texture hints at a fresh leg of upward momentum to continue from the current levels.
HAVELLS: Buy, CMP Rs1,200.5, Target Rs1,260, SL Rs1,175
The stock is trading in an Ascending Triangle chart formation and a breakout from the pattern is possible in the coming session for further upward movement.
L&TFH: Buy, CMP Rs88.95, Target Rs95, SL Rs85
Post short-term correction in the stock, a strong reversal formation from its multiple support zone indicates an uptrend from the current levels.
BAJAJFINSV: Buy, CMP Rs1,343, Target Rs1,410, SL Rs1,310
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 seen for a new up move.
(Source-Kotak Securities)
