Short-term texture still positive
For traders now, the 74,600-73,400 would act as a key supports zones while 74,200-74,400 could be the immediate resistance areas. On the other side, below 73,400 uptrend would be vulnerable
Mumbai: On Monday, the benchmark indices witnessed lacklustre activity as BSE Sensex was up by 66 points. Among sectors, Nifty PSE, Energy, Oil and Gas indices outperformed, rallied over two percent whereas Media index shed 1.85 per cent. Technically, after a last week promising rally, the index is witnessing range-bound activity at higher levels. However, the short-term texture of the market is still positive.
“We are of the view that, the range-bound texture is likely to continue in the near future. Hence, buying on intraday correction and sell on rallies would be the ideal strategy for the day traders,” says Shrikant Chouhan, head (equity research), Kotak Securities.
For traders now, the 74,600-73,400 would act as a key supports zones, while 74,200-74,400 could be the immediate resistance areas. On the other side, below 73,400 uptrend would be vulnerable.
Prashanth Tapse, senior V-P (research), Mehta Equities, says: “Markets were marginally up on selective buying support and scaled new highs, but gains were limited as investors traded with caution after the sharp upsurge in recent sessions. While domestic factors dictated the uptrend last week, investors will be closely watching for global cues for directional purposes in the near term.”
Stock Picks
Tata Communications (Buy)
CMP: 1,984.55 | SL: 1,940.00| Target: 2,050 and 2,100
The stock has given a good breakout above its all time high of 1,957.35 on its daily charts and successfully managed to close above the same. With the overall momentum being strong and the stock showing strong strength, the stock seems poised for a rally towards 2050 and above with a strict stoploss placed at 1,940.
NTPC
CMP: 353.85 | SL: 344.00 | Target: 375 and 380
The stock has given a good breakout above its recent swing high level of 348 and managed to give a good closing above the same. With the overall outlook on power stocks being strong and stock making new highs, NTPC seems poised for a rally towards 375 and 380 with a strict stop loss placed at 344 mark.
(Source_Riyank Arora Technical Analyst at Mehta Equities)
