Sensex likely to continue uptrend in near future
Quick intraday correction is not ruled out, if index succeeds to trade below 60,000, it could touch 55,600-55,500; on the flip side, above 60,000, first upside target for index would be 60,500
image for illustrative purpose
Mumbai: The benchmark indices extend gains, the nifty close 119 points higher, whereas the Sensex was up by 417 points. Among Sectors, strong buying was seen in PSU Banks, Media and IT stocks, whereas Auto and Reality stocks witnessed intraday profit booking at higher levels.
Technically, the market is consistently forming higher high and higher low series formation which indicating continuation of uptrend in the near future. It also formed a bullish candle on daily charts that also support the uptrend.
"However, quick intraday correction is not ruled out, if the index succeeds to trade below 60,000. Below which, it could touch 55,600-55,500," says Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. On the flip side, above 60,000, the first upside target for the index would be 60,500 further upsides may also continue.
Stock Picks
M&M: Mahindra and Mahindra had been outperforming since last few months but on Wednesday it has formed "Bearish Engulfing" on daily charts which is strong reversal pattern. Stock can be short with stop loss of Rs1290 Targets Rs1251/1228
Reliance: Stock has created a perfect Doji on daily chart and its forming rising wedge which is bullish reversal pattern. Stock has risen with lower volumes, which is a sign of losing momentum. Stock can be sold with stop loss of Rs2690 Targets Rs2610/2570.
(Source-Kush Ghodasara)
