Sensex forms bearish candle
Fresh selling round of selling pressure possible after dismissal of 59,800; On the flip side, the 60,500 would be the trend reversal level for the bulls
image for illustrative purpose
Mumbai: The benchmark indices witnessed profit booking at higher levels. BSE Sensex was down by 168 points.
Among sectors, despite tepid market conditions PSU band IT stocks rallied over one per cent whereas media and metal stocks corrected sharply, both the indices shed over one percent. Technically, the market is consolidating within the range of 59,950 to 60,600 price range. On daily charts the index has formed bearish candle near 100-day SMA which is broadly negative.
"We are of the view that, the 59,800 would act as a sacrosanct support zone for the traders, and fresh selling round of selling pressure possible only after dismissal of 59,800. Below the same, the index could slip till 59,500-59,300," says Shrikant Chauhan of Kotak Securities.
On the flip side, the 60,500 would be the trend reversal level for the bulls. Above 60,500 the index could move up till 60,800-61,000.
Stock Picks
ICICIPRULI: Buy, CMP Rs476.55, Target Rs500, SL at Rs467
On the daily 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.
HINDUNILVR: Buy, CMP Rs2,601, Target Rs2730, SL Rs2550
The counter is trading in a Triangle Chart formation and a breakout from the pattern is very likely in the coming session for further upward movement.
TECHM: Buy, CMP Rs1034, Target Rs1085, SL Rs1010
The stock is seen coming out of the consolidation phase with a range breakout. The formation and rising volume activity indicates further uptrend from the current levels in the coming trading sessions.
PNB: Buy, CMP Rs58.9, Target Rs62, SL Rs57
A breakout of the Symmetrical Triangle chart pattern with decent volume activity is seen on the daily charts, which indicate the start of a new bullish up move in the near term.
L&TFH: Buy, CMP Rs95.05, Target Rs100, SL Rs93
The stock is into a rising channel forming a Higher Top and Higher Bottom series continuously. Moreover, recent formation of a strong bullish candlestick pattern indicates an uptrend to continue in the near term.
(Source-Kotak Securities)
