Index fails to sustain above 20-day SMA
On Monday, the benchmark indices witnessed a range-bound activity, after a lackluster activity, BSE Sensex was down by 51 points.
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Mumbai: On Monday, the benchmark indices witnessed a range-bound activity, after a lackluster activity, BSE Sensex was down by 51 points. Among sectors, once again PSU Banks index outperformed, rallied over 1.5 per cent, whereas IT and consumer stocks registered intraday profit booking at higher levels.
Technically, after a weak opening, the index bounced back sharply, but it failed to sustaine above 20 day SMA (Simple Moving Average) level.
"We are of the view that, for the next few trading sessions, 20-day SMA or 62,250 would act as sacrosanct zone, above which the index could move up to 62,500-62,800," says Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities.
On the other side, bellow 62,250 strong possibilities of one more quick intraday correction is not ruled out. Below the same, the index could slip till 61,675-61,500.
Stock Picks
PERSISTENT: BUY, CMP Rs4052.7, TARGET Rs4250, SL Rs3970. After the recent decline in prices, the counter has reversed sharply by forming a bullish piercing candlestick formation indicating uptrend to resume from current levels.
OBEROIRLTY: BUY, CMP Rs918, TARGET Rs965, SL Rs899 The stock has reversed from its trend line support and it has formed an bullish candlestick pattern which is indicating upward momentum in the near term.
INDUSINDBK: BUY, CMP Rs1206.75, TARGET Rs1270, SL Rs1180. The stock is seen coming out of the consolidation phase with a range breakout, and hence the formation indicates a further uptrend from the current levels in the coming trading sessions.
HEROMOTOCO: BUY, CMP 2771.45, TARGET 2910, SL 2710. After the sharp upward rally, stock witnessed a price decline. However, at present reversal is seen from its important retracement zone, which suggests the resumption of bullish move.
HDFCLIFE: BUY, CMP Rs576.5, TARGET Rs605, SL Rs565 The counter had witnessed price correction from the higher levels. However, it has formed a hammer candlestick pattern at its important retracement level, which signifies trend reversal.
(Source-Kotak Securities)
