Sensex holds higher bottom formation
On Monday, the benchmark indices bounced back sharply as BSE Sensex was up by 320 points.
image for illustrative purpose
Mumbai: On Monday, the benchmark indices bounced back sharply as BSE Sensex was up by 320 points.
Among sectors, Nifty IT was the top gainer, rallied over 1.5 per cent whereas commodities and reality stocks witnessed profit booking at higher levels.
Technically, after a gap-up opening, the index held the positive momentum throughout the day. However, despite strong momentum it has failed to clear 61,200 resistance mark.
Currently, the index is trading above 20-day SMA and also holding higher bottom formation on intraday charts which is largely positive.
"For the traders now, 60,500 would be the trend decider level above which, the index could move up to 61,200-61,500," says Shrikant Chauhan of Kotak Securities.
On the flip side, below 60,500 selling pressure is likely to increase. Below the same, the index could slip till 60,200-60,000.
Stock Picks
m HCLTECH: Buy, CMP Rs1121.2, Target Rs1180, SL Rs1095
The stock is into a rising channel forming a higher top and higher bottom series constantly. Moreover, recent formation of a strong bullish candlestick pattern indicates an uptrend to continue in the near term.
m BAJAJAUTO: Buy, CMP Rs3626.95, Target Rs3810, SL Rs3550 For the past few sessions, the counter is trading in a range-bound mode. However, the recent bullish activity near the short-term moving average suggest at a strong up move in the coming horizon.
m EICHERMOT: Buy, CMP Rs3204, Target Rs3360, SL Rs3130
On daily time frame, the stock had been into an accumulation phase post its correction. Therefore, strong reversal from the current levels is very likely in the coming trading sessions.
m HAL: BUY, CMP Rs2522.7, Target Rs2650, SL Rs2470
The stock has given a breakout of the sloping channel pattern on the daily chart. Hence, further bullish momentum is likely to resume in the near term.
m FEDERALBNK: BUY, CMP Rs2601, Target Rs2730, SL Rs2550
The counter has formed an inverse head and shoulder chart pattern on the daily scale and breakout from the neckline resistance zone is very likely in the coming horizon.
(Source-Kotak Securities)
