Short-term texture still positive
60,500-6,900 could be the immediate profit booking zone for the bulls, while 60,000-59,800 would be sacrosanct support zone
image for illustrative purpose
Mumbai: The benchmark indices continued positive momentum for two sessions in a row as BSE Sensex was up by 415 points. Among sectors, Energy and Oil & Gas indices rallied over one percent
whereas intraday profit booking was seen in reality and PSU bank stocks. Technically, after a sharp bounce back on last Monday the market opened with a gap up, but witnessed intraday profit booking at higher levels. However, the short-term texture of the market is still into the positive side.
“We are of the view that, 60,500-6,900 could be the immediate profit booking zone for the bulls, while 60,000-59,800 would be the sacrosanct support zone for the trade,” says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Buying on dips and sell on rallies would be the ideal strategy for the short-term traders. However, below 59,800 uptrend would be vulnerable.
Stock Picks
- SBICARD: Buy, CMP Rs757, Target Rs790, SL Rs740
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.
- BATAINDIA: Buy, CMP Rs1,421, Target Rs1,490, SL Rs1,390
From the past many trading sessions, the counter is trading in a downward channel and it has entered into oversold territory. Hence, trend reversal from current levels is very likely in the near term.
- JUBLFOOD: Buy, CMP Rs447.8, Target Rs470, SL Rs437
On the weekly scale, the stock is forming a rounding bottom chart pattern post reversal from its support zone, the bullish momentum is indicating resumption of an uptrend rally from the current levels.
- BPCL: Buy, CMP Rs324.55, Target Rs340, SL Rs317
The stock has given a breakout of the sloping channel pattern on the daily chart. Hence, the bullish momentum is likely to continue in the near term.
- ICICIBANK: Buy, CMP Rs869, Target Rs910, SL Rs850
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)
