Sensex forms bullish Harami candlestick
Index formation supports pullback rally; Post weak opening, the market held the weak momentum, but recovered sharply in the last hour
image for illustrative purpose
Stock Picks
- VBL: Above Rs1020 with a target of Rs1050 and Stop loss of Rs1000. The stock is in positive momentum and is at the support of 40 EMA
- NATIONAL ALUMINUM: Above Rs130 with a target of Rs135 and Stop loss of Rs127. It has a support of 8 & 40 EMA in smaller time frame
- ADANI TRANSMISSION: Above Rs2250 with a target of Rs2290 and Stop loss of Rs2210. It is at the support of 40 EMA
- APOLLOHOSP: Above Rs4905 with a target of Rs4960 and Stop loss of Rs4870. It has reversed from the recent support zone
- ADANI TOTAL GAS: Above Rs1670 with a target of Rs1700 and Stop loss of Rs1640. It has support of 8 and 40 EMA
(Source: Capital Via)
Mumbai: The benchmark indices witnessed profit booking at higher level, the BSE Sensex was down by 778 points. Among sectors, metal stocks continued positive momentum, as a result Metal index rallied over three per cent. Whereas Banking, Financial and Auto indices lost the most.
On Wednesday, once again the Sensex took the resistance near 56,200 and opened with a gap down. Post weak opening the market held the weak momentum, but recovered sharply in the last hour.
Technically, the index has maintained lower top formation, but on daily charts, it has formed bullish Harami candlestick formation, which supports the pullback rally.
"We are of the view that, the short-term texture of the market is weak and fresh rally possible only after 55,750. Above which, the index could rally up to 56,000-56,200," says Shrikant Chauhan, head (equity research-retail), Kotak Securities.
On the flip side, as long as the index is trading below 55,600 the chances of hitting 55,400 and 55,200 would turn bright, he added.
