Sensex likely to see uptrend

Mumbai: On Monday, the benchmark indices continued the positive momentum. Sensex was up by 330 points. Among sectors, reality index was the top gainer, rallied over two per cent whereas despite strong momentum, auto index shed nearly one per cent.

Technically, after an early morning selloff, the index took the support near 63,500 and bounced back sharply. On daily charts, the index has formed bullish candle and on intraday charts, it is holding uptrend continuation formation, which is largely positive.

“We are of the view that, as long as the index is holding 63,700 mark, the pullback momentum is likely to continue. Above the same, the market could move till 64,300-6,500 for the day. Traders buying on intraday corrections and sell on rallies would be the ideal strategy,” says Shrikant Chouhan of Kotak Securities. On the flip side, below 63,700, traders may prefer to exit from the trading long points.

Holding the global bond yield at the current elevated levels will continue to distract investors unless supplemented with the reasonable medium-term target of Fed rate trajectory.

Stock Picks

APOLLOTYRE:

Buy, CMP Rs375, Target Rs400, SL Rs367

After a long correction, the stock is consolidating near 200-day SMA (Simple Moving Average). Double bottom formation indicating strong possibility of fresh uptrend rally from the current levels.

COAL INDIA: Buy, CMP Rs315, Target Rs330, SL Rs309 After a promising uptrend rally, the stock is witnessing positive consolidation at higher levels. we are of the view that, as long as the stock is trading above 309, the positive sentiment is likely to continue and above the same, it could move up till 330.

ICICI BANK:

Buy, CMP Rs924, Target Rs965, SL Rs907

After a sharp correction, the stock has formed promising reversal formation near 200-day SMA. A long bullish candle and promising reversal formation near 200-day SMA indicating strong possibility of fresh uptrend rally from the current levels.

(Source_Kotak Securities)