Sensex forms Hammer candle stick
The benchmark indices continued profit booking at higher levels, BSE Sensex was down by 175 points.
image for illustrative purpose
Mumbai: The benchmark indices continued profit booking at higher levels, BSE Sensex was down by 175 points. Among sectors, media, metal and IT stocks corrected sharply whereasdespite weak momentum, Reality index outperformed, rallied over two percent. Technically, after an opening selloff the index took the support near 59,000 and reversed. On intraday charts, it has formed Double Bottom formation and also formed Hammer candle stick pattern on daily charts which is broadly positive. However, the short-term trend is still in to the downside.
“We are of the view that, we could see a one quick pullback rally if the index succeeds to trade above 59,000,” says Shirkant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, fresh round of selling possible only after dismissalof 59,000 below the same the index could slip till 58,800-5,700.
- APOLLO HOSPITAL: Buy CMP Rs4,435 SL Rs4,375 Target Rs4,650 Technically, the stock has completed one leg of correction andcurrently it is trading near important retracement support levels. In addition, it is trading near 50 and 20-day SMA (Simple Moving Average) and short-term formation indicating strong possibility of fresh uptrend rally from the current levels.
- ICICI BANK: BUY CMP Rs857 SL Rs840 Target Rs885-890
After a short-term correction, the stock is trading near 200-day SMA(Simple Moving Average). The short-term texture of the stocks is oversold, and it is consistently taking support near 200-day SMA which is broadly positive. We are of the view that, 200-day SMA and 840could act as a sacrosanct support zones for the stock. And if it issucceeding to trade above the same, then it could retest the level of Rs890.
- BAJAJ FINANCE: Buy CMP Rs6,205 SL Rs6,120 Target Rs6,350
Post short-term correction, the stock consistently taking support near 50 and 20-day SMA (Simple Moving Average). We are of the view that,the stock has completed one leg of correction and currently tradingnear important retracement support level. The texture suggestingstrong possibility of fresh uptrend rally from the current levels.
- BANK OF BARODA: Buy; CMP Rs159 SL Rs155 Target Rs168-170
After a long correction on last Monday, the stock bounced back sharply. Despite tepid market conditions, it rallied nearly three percent. Bullishtrend reversal candle after short-term correction is indicating further uptrend from the current levels.
- POWER GRID: Buy; CMP Rs2,19.5 SL Rs215 Target Rs227-230
On last Monday, the stock rallied two per cent and also formed range breakout kind of formation. after a long time, it succeeds to trade above 200-day SMA (Simple Moving Average) or above 219. The short-term formation suggesting bullish sentiment is likely to continue in the near future.
(Source-Kotak Securities)
