Time to book profit at higher levels
Short-term texture is bullish, but mildly overbought
image for illustrative purpose
Mumbai The benchmark indices continued their positive momentum as BSE Sensex was up by 529 points. Among sectors, media and banking stocks outperformed whereas despite strong momentum in auto stocks witnessed intraday profit booking at higher levels.
Technically, after last Friday breakout the market intensified the positive momentum throughout the day. The index has formed bullish candle on daily charts and it also formed breakout continuation formation on intraday charts.
“We are of the view that, the short-term texture of the market is bullish, but mildly overbought. Hence, traders may prefer to book some profits at higher levels,” says Shrikant Chouhan of Kotak Securities.
For the trend following traders now, the 66,300 would be the sacrosanct support level. Above which, the index could rally till 66,900-67,000. On the flip side, below 66,300 level, the uptrend would be vulnerable.
STOCKS PICKS
1. ICICIBANK: Buy, CMP Rs972.05, Target Rs1,020, SL Rs950
On the daily scale, the counter has given a breakout of its ascending triangle chart pattern, which indicates further bullish momentum in the coming sessions.
2. ULTRACEMCO: Buy, CMP Rs8,269, Target Rs8,700, SL Rs8,100The stock has rebounded from the lows by forming a double bottom chart pattern. Additionally, the Harami candlestick formation suggests an up move likely to continue in the near term.
3. VOLTAS: BBuy, CMP Rs765, Target Rs800, SL Rs750
The stock had been into an accumulation phase and the recent bullish candlestick formations near support zone suggests a new leg of the up move from current levels.
(Source-Kotak Securities)
