Short-term texture still holds positive bias
For traders, 64,900-64,700 would be key levels to watch out, while 65,500-65,700 could act as a crucial resistance zone
image for illustrative purpose
MUMBAI On Monday, the benchmark indices continued positive momentum, the 30-share BSE Sensex was up by 486 points. Among sectors, PSU Bank and Oil and Gas indices outperformed. PSU Bank index rallied 3.65 per cent and Oil & Gas gained over 2.25 per cent.
Technically, after a gap-up opening, entire day the index hovered between 64,900 to 65,250 price ranges.
“We are of the view that, the short-term technical set up is still in to the positive side. However, due to temporary overbought conditions, we could see some profit booking at higher levels,” says Shrikant Chauhan of Kotak Securities.
Hence, for the day traders now buying on intraday corrections and sell on rallies would be the ideal strategy. For traders, 64,900-64,700 would be the key levels to watch out, while 65,500-65,700 could act as a crucial resistance zone.
Vinod Nair, head (Research), Geojit Financial Service says, “sentiment of investors are reinforced by positive domestic data and optimistic global cues. Global market was supported by resilient economic data, avoiding the possibility of a recession. India’s stock market trend was broad-based, owing to the outperformance from energy, financial, metal, and FMCG sectors. Economic activities are gaining strength with PMI level enlarging to 57.8, indicating sustained demand for products, fostering a sense of confidence in the manufacturing prospects.”
Stock Picks
1. ICICIBANK: Buy, CMP Rs2,849.8, Target Rs2,990, SL Rs2,790
The stock is seen coming out of the consolidation phase with a range breakout. The formation and rising volume activity indicates further uptrend from the current levels in the coming trading sessions.
2. JINDALSTEL: Buy, CMP Rs595.05, Target Rs625, SL Rs583
On the daily time frame, the counter has formed a Cup and Handle chart pattern and the structure indicates breakout from resistance zone in the near term for fresh up move.
3. TECHM: Buy, CMP Rs1,121.2, Target Rs1,180, SL Rs1,095
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)
