Pullback Formation May Continue

Mumbai: On Thursday, the benchmark indices continued their positive momentum, with BSE Sensex up by 115 points. Among sectors, the Nifty Digital index gained over two per cent, while oil, gas, and selective banking stocks witnessed intraday profit booking at higher levels. Technically, after a muted open, the market held positive momentum throughout the day. It also formed a reversal formation on the daily charts, which supports a further uptrend from the current levels.

Shrikant Chauhan of Kotak Securities, said: “We are of the view that as long as it is trading above 76,200, the pullback formation is likely to continue. On the higher side, the market could bounce back to the 77,000-77,100 range. On the other hand, if it falls below 76,200, the sentiment could change, and the market may retest levels of 76,000-75,700.”

STOCK PICKS

BSE Ltd | TRADE-BUY |CMP: Rs5,909|SL: Rs5,750 | TARGET: Rs6,150

The stock has touched anchor support mark of 5700 and seeing good signs of reversal from lower levels coming in. With price showing strong momentum pick-up and indicating potential rise, we feel that BSE Limited is making like a low risk buy here with strict stop-loss of 5750 for potential upside targets of 6150 and above

OFSS| TRADE-BUY |CMP: Rs10,056| SL: Rs9,900 |TARGET: Rs10,500

The stock has touched a major support mark of 9500 and indicating strong signs of reversal coming in from lower levels. With the volumes indicating good momentum pick-up and price forming a bullish piercing line formation on charts, it is expected that the stock should head higher towards 10,500 and above targets. A strict stoploss should be kept at 9900 mark to manage risk well

(Source: Riyank Arora, technical analyst at Mehta Equities)