Keep tech & FMCG stocks on watch list
-TECHM: BUY, CMP 1013.55, TARGET 1065, SL 990 Post bullish rally from the lows of 920 to 1040 we witnessed some corrective formation and recently a strong reversal candlestick have been formed near retracement zone on the daily chart.
- DRREDDY: BUY, CMP 4353.95, TARGET 4570, SL 4265 After the double top formation the stock had been in a bearish continuation chart pattern however current rebound from the support zone indicates worst is behind and fresh up move is very likely in the near term.
- TATASTEEL: BUY, CMP 743.5, TARGET 780, SL 725 On monthly time frame the stock has formed bullish continuation chart pattern and currently a breakout is evident from its sloping channel for further upside on the daily scale.
- MCDOWELL: BUY, CMP 542.75, TARGET 570, SL 530 The stock has formed a strong base into its demand zone post correction and with the rise in volume activity it indicates reversal of trend should occur with a favorable risk and reward set-up.
- INFY: BUY, CMP 1370.8, TARGET 1440, SL 1340 The stock has been in a rising channel and lately took a pause in momentum nevertheless a strong bullish candle specifies resumption of its uptrend continuation pattern.
Mumbai: On Monday, Indian equity benchmarks began the day with a slight negative bias in the first half, owing to weakness in global peers, says a CapitalVia report.
Today, a hammer has formed in the market and it is in the trading range of the previous day. Such a formation invites a trending and massive activity on either side. If the market goes above 50,000 tomorrow, the Sensex is likely to go up to 50,500/50,700. Tomorrow would be a crucial day for the market. Keep a strategy of buy on dips in the market. 49,500/49,250) levels would be the main supports.
"Sensex could fall heavily below 49,250 levels. Bank Nifty has reached a double bottom at 33350. Small traders can take long positions with a stop loss of 33,300 or can take short positions below the 33300 level. Technology and FMCG stocks should be on the watch list," says Shrikant Chouhan, EVP, equity technical research at Kotak Securities.