60,200 level immediate hurdle for day traders
On Monday, the market opened with a gap of 250 points, but one more time it took the resistance near 60,400 level. After an early morning intraday fall, eventually the market took the support near 59,890 and reversed sharply.
image for illustrative purpose
Stock Picks
- GODREJPROP: Above Rs2,284 with a target of Rs2,307 and Stop loss of Rs2,262. The stock is in upward trending channel and has given the breakout.
- AMBUJACEM: Above Rs418 with a target of Rs423 and Stop loss of Rs414. It has support of 8 and 40 EMA.
- HINDALCO: Above Rs481 with a target of Rs486 and Stop loss of Rs477. The stock is in upward trending channel and is on the verge of a breakout.
- IOC: Above Rs118.50 with a target of Rs121 and Stop loss of Rs117. It has a support of 8 EMA.
- RAIN: Above Rs232 with a target of Rs235 and Stop loss of Rs230. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: On Monday, the market opened with a gap of 250 points, but one more time it took the resistance near 60,400 level. After an early morning intraday fall, eventually the market took the support near 59,890 and reversed sharply. Among sectors, after a long-time strong buying was seen in auto stocks. As a result, NSE Nifty Auto index rallied over 3.5 per cent. Amid auto stocks, the Maruti, Tata Motors and Bharat forge has formed strong technical breakout formation. And the texture of the chart suggests these stocks likely to outperform in the near future. Technically, post robust uptrend rally, on intraday charts, the BSE Sensex has formed double top formation, which is indicates temporary weakness. However, the short-term trend is still in to the positive side. "For the day traders, 60,200 would be the immediate hurdle, below the same the correction wave will continue up to 59,800-59,600," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
On the flip side, above 60,200 uptrend continuation formation is likely to continue up to 60,400-60,650, he added.
