Pullback rally more likely
On Monday, the benchmark indices witnessed a volatile trading session, after a roller coaster activity. NSE Nifty ended 45 points higher, while BSE Sensex was up by 170 points
image for illustrative purpose
Mumbai: On Monday, the benchmark indices witnessed a volatile trading session, after a roller coaster activity. NSE Nifty ended 45 points higher, while BSE Sensex was up by 170 points. Among sectors, IT and Digital indices gained over one per cent whereas profit booking continued in oil and energy stocks.
Technically, after a sharp intraday correction, the index took support near 58,700 and bounced back sharply. However, the short-term texture of the market is still on the downside, however, due to oversold activity the pullback rally is more likely, if the index succeeds to trade above 59,200.
"Above which, the market could rally till 59,800-60,,000. On the flip side, below 59,200 the market could slip till 58,700-58,500," says Shrikant Chouhan of Kotaki Securities.
The current market structure is volatile. Hence, level-based trading would be the ideal strategy for day traders.
Stock Picks
m APOLLOTYRE: BUY, CMP 313.2, Target Rs330, SL at Rs305
The stock has rebounded from the lows by forming a double bottom chart pattern. Moreover, the incremental volume activity is suggesting a new leg of upward rally in the near term.
m TATACHEM: Buy, CMP Rs957.5, Target Rs1005, SL Rs935
After the gradual upward rally, stock witnessed a price decline. However, at present reversal is seen from its important retracement zone, which suggests the resumption of bullish trend.
m CUMMINSIND: Buy, CMP Rs1394, Target Rs1465, SL Rs1365
The stock is trading near its multiple support zone. Hence, the structure is indicating reversal from current levels for a fresh leg of up move in the near term.
m HAVELLS: Buy, CMP Rs1177, Target Rs1240, SL Rs1150
From the last few sessions, the counter is stuck into a rectangle formation and trading in a range-bound move. However, the price action suggests at a likely breakout from the consolidation for fresh up move.
m BHARATFORG: Buy, CMP Rs867, Target Rs910, SL Rs845
The counter is trading into a range bound pattern for the past few trading sessions. Nevertheless, the structure of the chart formation hints at a resumption of the bullish trend from the current levels.
(Source-Kotak Securitirs)
