Book profits near resistance levels

Stock Picks

- ASTERDM: Above Rs229 with a target of Rs232 and Stop loss of Rs227. The stock is in upward trending channel and is on the verge of a breakout.

- BALRAMCHIN: Above Rs366 with a target of Rs370 and Stop loss of Rs363. It has support of 8 and 40 EMA.

- BAJFINANCE: Above Rs7,433 with a target of Rs7,508 and Stop loss of Rs7,359. The stock is in upward trending channel and has given a breakout.

- ONGC: Above Rs122 with a target of Rs125 and Stop loss of Rs120. It has a support of 8 EMA.

- SYNGENE: Above Rs631 with a target of Rs638 and Stop loss of Rs625. It has reversed from the support of 8 EMA.

(Source-CapitalVia)

Mumbai: After a spectacular rally, the benchmark indices witnessed lackluster activity with a momentum of near 500 points. The week opening was positive, but post strong opening due to lack of follow-through buying interest and tepid global market conditions market was consolidating in the range of 58,000-58,500 points.

Among sectors, buying interest continued in media and selective mid-cap and small-cap stocks whereas, once again witnessed technical selloff at higher levels in Pharma stocks. In the meantime, after a robust rally Nifty Reality index trading near important retracement support level and it also completed one leg of short-term correction. Hence, strong possibility of sharp reversal is not ruled out in reality stocks, post reversal reality stocks likely to outperform in the near future.

Technically, on weekly charts, the market maintained breakout continuation formation but on intraday charts it has formed Double Top formation which is indicating temporary weakness.

"We are of the view that, the medium-term trend is extremely positive, but due to overstretch rally traders may prefer to book profits near resistance levels. Hence, buy on dips and sell on rallies would be the ideal strategy for the trader," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.