Sensex in short-term positive trend
On the last day of July monthly F&O expiry, the benchmark indices witnessed a promising intraday rally.
image for illustrative purpose
Mumbai: On the last day of July monthly F&O expiry, the benchmark indices witnessed a promising intraday rally. BSE Sensex was up by 1,041 points. Among sectors, all the major sectoral indices were traded in the green and Nifty IT Index outperformed rallied nearly three per cent. Technically, on the backdrop of strong US Markets cues, our market opened with a gap up and post-gap up opening it not only cleared the short-term resistance of 56,200points, but also succeeded to close above the same. It also formed long bullish candle on daily charts which is largely positive.
"We are of the view that, the short-term trend is still in to the positive side. 57,500 would act as an immediate resistance zone," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
On the flip side 56,500-56,300 could be the key support levels for the positional traders. The market is likely to witness range bound activity. Hence, buying on dips and sell on rallies could be the ideal strategy for the day traders.
Stock Picks
Coforge: Stock has been consolidating in the range of Rs3500-3800 during July series but on Thursday it saw a good breakout on the upside from the zone. MACD has shown positive crossover giving breakout more validity. Stock future can be bought for 2-4 trading sessions for the Target of Rs4050, SL Rs3680
HCLTECH: Continuing breakouts in IT stocks, HCLTECH has after 21 sessions, finally closed above 5 and 10 DSMA crossover with higher than average volumes. Stock future can be bought for momentum play for 4-5 sessions for Targets of Rs975/993 with stop loss at Rs937.
- (Source: Kush Ghodasara)
