Sensex hovering near retracement resistance
The benchmark indices bounced back sharply as BSE Sensex was up by 234 points
image for illustrative purpose
Mumbai: The benchmark indices bounced back sharply as BSE Sensex was up by 234 points. Among sectors, Metal and IT index outperformed, metal index gained over three per cent, while IT index rallied 2.35 per cent.
Technically, after the last Friday reversal, the market continued the positive momentum and it also formed a bullish candle on daily charts which is largely positive.
“We are of the view that, the index completed one leg pullback rally and currently it is trading near important retracement resistance zone,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. For the traders now, as long as it is trading above 61,700 the positive sentiment is likely to continue. On the higher side, the market could rally till 62,200-62,350. On the flip side, fresh selling possible only after dismissal of 61,700. Below which, the market could retest the level of 61,400-61,200.
ICICIPRULI: Buy, CMP Rs435.5, Target Rs460, SL Rs425
The counter has reversed from its double bottom support zone and the texture of the chart suggests a reversal rally with a favourable risk and reward scenario in the coming horizon.
LTTS: Buy, CMP Rs3,928, Target Rs4,110, SL Rs3,850
The stock is into a rising channel forming a higher top and higher bottom series. Moreover, recent formation of a strong bullish candlestick pattern indicates an uptrend to continue in the near term.
BHARTIARTL: Buy, CMP Rs801, Target Rs840, SL Rs780
On the daily scale, the stock is trading in an Ascending Triangle chart formation and a breakout from the pattern is possible in the coming session for further upward movement.
(Source_Kotak Securities)
