Level-based trading strategy ideal for investors
On Monday, after a long weekend, the benchmark index opened with a gap of 318 points. And after a volatile intraday session, eventually the Sensex succeed to close above 60,200 mark, which is broadly positive for the market.
image for illustrative purpose
Stock Picks
- BRIGADE: Above Rs502 with a target of Rs507 and Stop loss of Rs497. The stock is in upward trending channel and has given the breakout
- COLPAL: Above Rs1,548 with a target of Rs1,563 and Stop loss of Rs1,533. It has support of 8 and 40 EMA
- DIVISLAB: Above Rs5,040 with a target of Rs5,090 and Stop loss of Rs4,990. The stock is in upward trending channel and is on the verge of a breakout
- GODREJPROP: Above Rs2,450 with a target of Rs2,474 and Stop loss of Rs2,426. It has a support of 8 EMA
- ICICIPRULI: Above Rs657 with a target of Rs664 and Stop loss of Rs650. It has reversed from the support of 8 EMA
(Source-CapitalVia)
Mumbai: On Monday, after a long weekend, the benchmark index opened with a gap of 318 points. And after a volatile intraday session, eventually the Sensex succeed to close above 60,200 mark, which is broadly positive for the market. Among sectors, cement, PSU banks and media stocks continued buying interest while pharma and private banks registered technical selloff. Amid private banking stocks, the IndusInd Bank shed nearly 10 per cent. Technically, on intraday charts, the index has formed promising higher bottom formation and it also formed long leg Hammer candle stick formation, but the key concern is, the BSE Sensex is still trading below 20-day SMA or below 60,500.
"We are of the view that, 60,500 would be the next intraday breakout level for the day traders, above the same uptrend momentum will continue up to 60,700-60,900," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
On the flip side, strong support has been placed near 60,000, below the same uptrend would be vulnerable. The texture of the market is still volatile hence level-based trading would be the ideal strategy for the day traders, he added.
