Sensex forms long bullish candle
For traders 54,300-54,200 would act as a strong support zone, above this it could hit 54,800-55,000; on the flip side, below 54,200 uptrend would be vulnerable
image for illustrative purpose
Mumbai: On Monday, the benchmark indices witnessed a stellar rally as BSE Sensex moved up by 761 points. Among sectors, almost all the major sectoral indices were traded in the green, but Nifty IT Index outperformed, rallied over 3 per cent.
"Technically, on the backdrop of strong global cues our market opened with a gap up and post gap up it held the positive momentum throughout the day," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On daily charts, the index has formed long bullish candle which suggesting continuation of uptrend in the near future. For the traders now 54,300-54,200 would act as a strong support zone. As long as the index is trading above the same, the uptrend formation is likely to continue. Above which, the index could hit the level of 54,800-55,000. On the flip side, below 54,200 uptrend would be vulnerable. Below the same, traders may prefer to exit out from trading long positions.
Stock Picks
VEDL FUTURE: VEDL future has given a breakout of inverted H&S with neckline at Rs235. Closing has been with volumes above neckline which has activated targets of Rs260 with SL Rs226
UPL future: UPL today moved out of 4 days of downtrend with higher volumes and in short term it's on move for 5th Wave which could extend rally to new high for short term. Future could be bought for targets of Rs705 SL Rs668.
(Source: Kush Ghodasara)
