Now, bottom-up strategy ideal for investors
Monday’s rally provided relief to the investors post recent sell-off. The benchmark indices witnessed sharp recover rally, the BSE Sensex gained over 860 points.
image for illustrative purpose
Stock Picks
- GRASIM: Above Rs1,785 with a target of Rs1,802 and Stop loss of Rs1,768. The stock is in upward trending channel and has given the breakout.
- BHARATFORG: Above Rs789 with a target of Rs796 and Stop loss of Rs782. It has support of 8 and 40 EMA.
- BHARTIARTL: Above Rs715 with a target of Rs722 and Stop loss of Rs708. The stock is in upward trending channel and is on the verge of a breakout.
- BDL: Above Rs416 with a target of Rs420 and Stop loss of Rs412. It has a support of 8 EMA.
- CESC: Above Rs89 with a target of Rs90 and Stop loss of Rs88. It has reversed from the support of 8 EMA.
(Source-CapitalVia)
Mumbai: Monday's rally provided relief to the investors post recent sell-off. The benchmark indices witnessed sharp recover rally, the BSE Sensex gained over 860 points.
Deven Choksey, MD, KR Choksey firm, says: "Fundamentals are strong in the stock market. However, the ongoing corrections have to do with the valuations."
After a last week sharp fall, on Monday the BSE Sensex opened with a gap up and in the late afternoon eventually it cleared the intraday resistance of 59,800 points.
Post intraday breakout, the index maintained positive momentum which is broadly positive for the market. All the major indices were traded in the green, but Reality, Metal and IT indices were outperformed. Technically, the BSE Sensex completed one leg of pullback rally and now 60,400 and 60,550 would act as a crucial resistance level. The index has formed strong bullish candle, but the key concern is, it is still trading below 20-day SMA.
"We are of the view that, the intraday texture of the market is bullish, but traders may prefer to take caution stance between 60,300-60,500," says Shrikant Chauhan, head of equity research (Retail), Kotak Securities.
As long as, the index is trading above the level of 59,900, the uptrend texture is intact. For the day trades, buy on dips and sell on rallies would be the ideal stagey. 60,000-59,900 could be the strong support zone for the bulls. Below 59,900 uptrend would be vulnerable, he added.
According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, "The long-term fundamentals remain intact and one should adopt bottom-up strategy, as we expect stock/sector-specific momentum to continue. Due to the festival of Diwali, markets will have a truncated 3-day trading session this week."
