Sensex forms shooting star candle at resistance level
Trend reversal possible only after dismissal of 59,800, above which it could touch 60,300-60,500; on flip side, below 59,800 selling pressure is likely to increase
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Mumbai: The benchmark indices continued the positive momentum, the Nifty jumped 103 points while the Sensex rallied over 322 points. Among Sectors, all the major sectoral indices were traded in the green but Reality and Media sector outperformed. Both the indices rallied nearly 2 per cent. Technically, after a gap up opening the index quickly surpassed previous week highest level.
However, after a strong rally in the last hour of trade the index witnessed some profit booking at higher levels. After a promising uptrend rally the index has formed shooting star kind of candle formation near important resistance level. "We are of the view that the short term market structure is still in to the bullish side and trend reversal possible only after dismissal of 59,800.
Above the same, the index could touch the level of 60,300-60,500", says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, below 59,800 selling pressure is likely to increase. Below which, the index could retest the level of 59,500-59,300.
Stock Picks
OBEROIRLTY: BUY, CMP Rs1059.1, TARGET Rs1110, SL Rs1035. The stock is seen coming out of the consolidation phase with a range breakout. The formation and rising volume activity indicates further uptrend from the current levels in the coming trading sessions.
HAVELLS: BUY, CMP Rs1383.55, TARGET Rs1450, SL Rs1355. After the strong up move, the stock witnessed minor correction. However, it recovered sharply from its important retracement zone along with incremental volumes.
IEX: BUY, CMP Rs163.1, TARGET Rs172, SL Rs158. On daily time frame, the stock had been into an accumulation phase post its correction. Therefore, strong reversal from the current levels is very likely in the coming horizon.
MCDOWELL-N: BUY, CMP Rs838.4, TARGET Rs880, SL Rs820. The stock is into a gradual up move post its declining trend and the rising trend suggest bullish momentum to continue in the near term.
TATASTEEL: BUY, CMP Rs107.75, TARGET Rs114, SL Rs105. The counter is trading in a triangle chart formation and a breakout from the pattern is very likely in the coming session for further upward movement.
(Source: Kotak Securities)
