Focus on financials and metal stocks
The Sensex has formed a bullish piercing pattern by closing above the median of the previous day, which was at 47,958 levels that can be found at the end of a downtrend.
image for illustrative purpose
Stock Picks
- JINDALSTEEL - Above 446 with a target of 460 and Stop loss of 438. It is trading in a Strong uptrend and has recently breached an important resistance level
- NAUKRI - Above 4,850 with a target of 4,940 and Stop loss of 4,790. It has a support of 8 and 40 EMA.
- JSWSTEEL - Above 650 with a target of 665 and Stop loss of 635. The stock is in upward trending channel and given a phase breakout.
- ICICIBANK - Above 582 with a target of 595 and Stop loss of 570. It has a support of 8 and 40 EMA.
- BAJAJ FINANCE - Above 4,715 with a target of 4,820 and Stop loss of 4,650. It has reversed from the support of 8 EMA.
(Source – CapitalVia)
Mumbai: The Sensex has formed a bullish piercing pattern by closing above the median of the previous day, which was at 47,958 levels that can be found at the end of a downtrend.
"Based on it, our strategy should be to create long positions with between 47,950 and 47,700 levels," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.
On the higher side, we would see the levels of 48,500 and 48,650. A close above the levels of 48,650 would validate the formation of bullish reversal and in that case, the Sensex may rally to even 50,000 levels where it has the biggest hurdle. On the other side, 47,690 and 47,200 would be major supports. Keep a final stop loss at 47,200 for creating any long position, he said.
Today the market breadth was healthy and it was mainly due to renewed buying interest in financials. The Bank-Nifty closed at the highest point of the day. The focus should be on financials and metal stocks, he added.
