Sensex forms Double Bottom
Technical charts suggest strong possibility of fresh pullback rally from current levels
image for illustrative purpose
Stock Picks
- BDL: Above Rs490, the stock looks super bullish, making higher top higher bottom formation on hourly charts, TGT – Rs550 (Positional) keeping SL at Rs470
- Star Health: The stock has formed good base near Rs765 level, Above Rs792 level, stock is likely to show great momentum in coming days, Tgt – Rs830 & SL – Rs775
- Indian Bank: Above Rs145, the stock has crossed its near consolidation & formed big white candle on daily charts which has also crossed its 50&100 DEMA, showing positive moves. TGT – Rs155 & SL – Rs138
- Bank Of Baroda: Above Rs105, giving massive breakout on daily charts, Continuous Higher Top Higher Bottom formation, Since banks are in focus, this rally may continue further TGT – Rs115 & SL – Rs98
- Chola Fin: Above Rs662, Stock is looking super bullish, which is giving huge breakout, TGT – Rs700 & SL – Rs650
(Source: Equity 99)
Mumbai: The benchmark indices corrected sharply as the BSE Sensex was down by 446 points. Among sectors, despite weak market sentiment PSU Banks continued positive momentum, rallied over five percent. Whereas, profit booking continued in IT stocks, as a result IT index corrected over 3.5 per cent technically, due to weak global market conditions, the Sensex opened with a big gap down, but one more time it took the support near 56,500 and reversed sharply.
On intraday charts, the index has formed Double Bottom formation, which suggests strong possibility of fresh pullback rally from current levels. On daily and intraday time, the index consistently taking support near 56,500 and the momentum indicators also support quick uptrend rally from current levels.
"We are of the view that, for the bulls 56,800 and 56,500 would be the strong support zone," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
Above the same pullback rally will continue till 57,700-57,900. On the flip side, below 56,500 uptrend would be vulnerable. The market is volatile and remains volatile in the near future. Hence, level-based trading would be the ideal strategy for the day traders, he said.
