Sensex forms Double Bottom

Mumbai: The benchmark indices witnessed volatile trading session, after a roller coaster momentum. BSE Sensex was up by 214 points. Among sectors, IT index gained the most, rallied over 1.40 per cent, whereas intraday profit booking was seen in Auto and Reality stocks from the higher levels.

Technically, on intraday charts, the index has formed double bottom formation, it also formed bullish candle on daily charts which is broadly positive.

"We are of the view that, 57,650 and 58,000 would be the key support zones for the traders. As long as the index is trading above the same uptrend texture is likely to continue. Above which, it could move up to 58,650-58,800", says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, for the trend following and positional traders 57,650 would be the sacrosanct support level. Below 57,650, traders may prefer to exit out from trading long positions.

Stock Picks

TCS: Stock had been trading in the range of 3200-3300 since last 4 session but today it has moved out of the congestion and closed above resistance level. Indicators seems to be positive with MACD on daily chart crossing over 0 mark with volume momentum. Stock future can be bought with stop loss of 3201 with targets of 3395/3480

ZEEL: Stock had been trading upward since last 2 months and taking strong support at 5-10 day average but now the stock is showing weakness on the front of indicators. Recommend to SELL stock future below 239.50 for tgts of 234/230.80 with stop loss: 243.90

- (Source: Kush Ghodasara)