Market texture still non-directional
As long as the index is holding 57,300, the market is likely to retest the level of 58,000-58,200; Dismissal of 57,300 could trigger further weakness till 57,000-56,800
Quick intraday relief rally likely
Stock Picks
- NMDC: BUY, CMP Rs161.70, SL Rs158 TARGET Rs170. After a long time, the stock clears the resistance of 160 and succeed to close above the same. The stock has formed promising breakout formation. We are of the view that, as long as the stock is holding the level of 158 the strong wave will continue till 170
- Tech Mahindra: BUY, CMP Rs1525, SL Rs11485, TARGET Rs1605. Post correction, the stock consistently holding higher bottom formation which is broadly positive for the Tech Mahindra. Currently, the stock comfortably trading above 50 and 20 day SMA and texture of the charts suggesting high chances of fresh uptrend rally from current levels
- Cipla: BUY, CMP Rs1017.80, SL Rs992, TARGET Rs1070. In this month so far the stock rallied over 14 percent. On daily and weekly charts, it is consistently holding higher high and higher low formation which is largely positive for Cipla Ltd. After a promising breakout currently it is trading near important retracement support level. Looking at the overall pattern it offers buying opportunity for the positional traders with a decent risk-reward ratio. The trend reversal move is likely to continue up to 1070
- DLF: BUY, CMP Rs363, SL Rs353, TARGET Rs381. After a robust pullback rally, currently the stock is consolidating near 200 day SMA. The Ahort term formation indicating further uptrend from the current levels. Unless it trading below Rs353 or 20 day SMA, positional traders retain an optimistic stance and look for a target Rs381 fresh buying can be consider now and on dips, if any between Rs363 and Rs358 levels with a stop loss below Rs353
(Source: Kotak Securities)
Mumbai: The benchmark indices on Monday witnessed range-bound trading session as NSE Nifty ends 69 points higher, while BSE Sensex was up by 230 points. Among sectors, buying interest was seen in banking and financial stocks. Technically, one more time the index took the support near 56,850 or 200-day SMA and bounce back sharply and succeed to close above 50-day SMA, but the broader texture of the market is still non-directional.
"From the last six trading sessions, the market is witnessing range-bound activity. In the near future, as long as the index is holding 57,300 the market is likely to retest the level of 58,000-58,200," says Shrikant Chouhan, head of equity research (retail), Kotak securities. However, dismissal of 57,300 could trigger further weakness till 57,000-56,800, he added.
