Sensex forms bullish candle
58,900 would be the key support zone for the traders, above it could move till 59,500-59,700; on flip side, below 58,900 fresh round of selling is possible
image for illustrative purpose
Mumbai: Monday, the benchmark index Sensex rallied over 442 points. Among Sectors, strong buying was seen in Media and Metal stocks as a result, Media index rallied 2.5 per cent and Metal index gained over 1.5 per cent.
Technically, the market opened with a positive note and rallied over 442 points. It also formed bullish candle on daily charts. Currently, the market is witnessing positive consolidation formation near 20 day SMA (Simple Moving Average).
"We are of the view that, 58,900 would be the key support zone for the traders, above which the market could move till 59,500-59,700. On the flip side, below 58,900 fresh round of selling is possible," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
As a result, below the same, the index could slip till 58,600-58,500.
Stock Picks
LT: BUY, CMP Rs1968.35, TARGET Rs2060, SL Rs1920. The counter has shown impressive performance over the last two months. The structure is representing a bullish continuation chart pattern, which hints at an uptrend to persist in the coming trading sessions.
VOLTAS: BUY, CMP Rs987.25, TARGET Rs1040, SL Rs965. 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.
INTELLECT: BUY, CMP Rs614.05, TARGET Rs645, SL Rs600. After a medium term correction, eventually the stock took the support and reversed its trend. Post reversal, it has formed double bottom chart formation. The overall pattern offers buying opportunity for the positional traders with a decent risk-reward ratio.
ZEEL: BUY, CMP Rs251, TARGET Rs265, SL Rs245. The stock had witnessed price correction from the higher levels and eventually, it has formed an inverted hammer candlestick pattern near its support zone, which signifies trend reversal.
COALINDIA: BUY, CMP Rs231.6, TARGET Rs244, SL Rs225. The counter has shown a blistering rally over the last many months. The current bullish trend of the rising channel formation is likely to continue in the coming horizon.
(Source: Kotak Securities)
