Buy on dips around 52.6K/52.5K levels
The market breadth was strong, but market volume was low. On the first day of the week, the range-bound market rallied to the level of 52,920 points, which is an upper boundary for the market.
image for illustrative purpose
Mumbai: The market breadth was strong, but market volume was low. On the first day of the week, the range-bound market rallied to the level of 52,920 points, which is an upper boundary for the market.
However, till the market is not crossing 53,100 level, the strong buyers would not enter the market. On Tuesday, initially the level of 53,100 would act as major resistance and support would be 52,600 points.
"The strategy should be to buy on dips around 52,600/52,500 levels or if the market is closing above the levels of 53,150 points," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
CapitalVia in its report said: "We witnessed some recovery in the market from the support of 52,600 points. Our research suggests, trading above 52,600 is positive from a short-term perspective. If the market breached the resistance zone of 52,950-53,000 and sustain above these resistance zone, we expect the market to gain momentum, leading to an upside projection till 53,500-53,600 level."
Stock Picks
- COAL INDIA: The stock has formed a rounding bottom chart pattern post the reversal from its multiple support zone, the strong bullish candlestick is indicating resumption of an uptrend rally from the current levels.
- VEDL: A strong breakout of the Symmetrical triangle pattern with incremental volume activity is seen on the daily charts which indicate a strong bullish momentum to persist in coming sessions.
- TCS: The stock is into a rising channel forming a Higher Top and Higher Bottom series continuously, recently it took support at the rising trend line for bullish continuation formation.
- BAJFINANCE: For the past few session, the counter is trading in a triangle formation with a narrow range activity however recent bullish activity near descending trend line indicates a strong breakout is likely in the near term.
- M&M: The stock is trading into an accumulation zone near short term moving averages, additionally, the trend line breakout on intraday charts indicates up move to resume in the coming horizon.
(Source-Kotak Securities)
