Uptrend formation likely above 58,500 level

Mumbai: The benchmark indices witnessed range bound activity. The Nifty ends 10 points higher, while BSE Sensex was up by 35 points. Among sectors, Metal index was the top gainer, rallied nearly 2 per cent whereas profit booking was seen in IT and Reality stocks.

'Technically, the support has shifted to 58,500 from 58,200. We are of the view that, as long as the index is trading above 58,500 the uptrend formation is likely to continue," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Above which, the index could move up to 59,000-59,200. However, below 58,500 level uptrend would be vulnerable. Below which, the index could retest the level of 58,200-58,000.

Stock Picks

Axisbank: Stock has given a good rally in recent weeks which got indicators into over bought zone. Stock has given an indecisive close on Wednesday with a minor price correction after opening higher in the morning. Stock is ready for a good correction in near term. We can initiate a Sell on AXISBANK for Target of Rs721/708 and Stop loss Rs756.

Tatapower: Stock has been consolidating after non-stop rally from 190 levels in June to almost 235 recently before quarterly results. But now stock is resisting near 200 day average at 235 and has also given negative divergence with RSI and MACD. Stock future can be short for few sessions with SL at Rs235 and Target Rs218/211. Some sell off with volumes below 5 day average.

(Source: Kush Ghodasara)