It's time to be a level-based trader
Today, the market remained volatile between the narrow range of 49,550 and 49,900. It came down from the expected highs but managed to survive at a lower level.
image for illustrative purpose
Stock Picks
- COLPAL: BUY, CMP 1583, TARGET 1660, SL 1550 - Post double top formation stock was trading in a downward sloping channel and recently breakout is evident with decent
volume activity on daily chart.
- DRREDDY: BUY, CMP 4453.4, TARGET 4650, SL 4350 - Stock is near its multiple support zone and formed a double bottom chart pattern and an inverted hammer candlestick indicates reversal in near term.
- BRITANNIA: BUY, CMP 3411.8, TARGET 3580, SL 3340 - After breakdown of its head and shoulder pattern stock drifted to its demand zone and currently a strong bullish reversal candlestick formation indicates completion of its bearish leg.
- RELIANCE: BUY, CMP 2101.7, TARGET 2200, SL 2050 - The stock has retested its resistance zone and given a breakout with a hammer candlestick formation on daily chart indicating bulls have the upper hand for further upside momentum.
- TATASTEEL: BUY, CMP 730.4, TARGET 765, SL 715 - The stock has taken support of its 10 day SMA and reversed sharply countering the bearish move of its previous trading day indicating strength in momentum. (Source-Kotak Securities).
Mumbai: Today, the market remained volatile between the narrow range of 49,550 and 49,900. It came down from the expected highs but managed to survive at a lower level.
It could be due to the massive trading activity on Friday. The market remained bullish in the previous day's trading range and created a bullish "harami pattern" on the daily chart. 'The Sensex gained over 700 points in the late afternoon session, as Indian stock markets expanded their gains,' said a report by CapitalVia. Tomorrow may be an important day for the market as the dismissal of 50,050 would be extremely positive for the market and the dismissal of 49,300 would be negative. "Today, unexpectedly, all stocks in the Sensex 30 basket except Bharti Airtel closed in positive territory. Companies in HDFC, HDFC Bank, ICICI Bank and Reliance Industries performed better than expected. Be a level-based trader on Tuesday," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.
