Pullback formation may continue till 61,200
A strong bullish candle on daily charts and promising reversal formation are indicating further uptrend from the current level
image for illustrative purpose
Mumbai: On Monday, the benchmark indices bounce back sharply, BSE Sensex was up by 845 points. Among sectors, almost all the major sectoral indices were traded in the positive zone, but IT index outperformed, rallied over 2.5 percent.
Technically, after a gap up opening, index comfortably trading above 60,500 mark, which is broadly positive. A strong bullish candle on daily charts and promising reversal formation are indicating further uptrend from the current levels. "For the bulls, 60,500 would be the sacrosanct support zone. Above the same, the pullback formation will continue till 61,000-61,200. On the flip side, below 60,500 uptrend would be vulnerable. Below the same the index could retest the level of 60,300-60,200," says Shrikant Chauhan of Kotak Securities.
Stock Picks
UPL: BUY, CMP Rs733.7, Target Rs770, Stop Loss Rs717
For the past few sessions, the stock is seen trading into an accumulation zone near the important retracement levels. However, the recent range breakout on daily charts indicates up move to resume in the coming sessions.
ULTRACEMCO: Buy, CMP Rs7030, Target Rs7380, SL Rs6880
The counter is trading in a triangle chart formation with decent volume activity and a breakout from the pattern is very likely in the coming session for further upward movement.
AXISBANK: Buy, CMP Rs957.95, Target Rs1010, SL Rs935
The stock has been in a rising channel on weekly basis and lately took a pause in momentum. Nevertheless, closing above its short-term moving average on daily scale suggest bullish momentum to continue from the current levels.
HCLTECH: Buy, CMP Rs1064, Target Rs1120, SL Rs1040
The stock is seen coming out of the consolidation phase with a range breakout, and hence the formation indicates a further uptrend from the current levels in the coming trading sessions.
M&MFIN: Buy, CMP Rs236.05, Target Rs245, SL Rs230
The stock is forming an inverse head and shoulder chart pattern and breakout from the neckline resistance zone is very likely in the near term for fresh up move.
(Source-Kotak Securities)
