Quick intraday correction likely
The benchmark indices continued the positive momentum as BSE Sensex moved up by 85 points. Among sectors, strong buying was seen in auto and reality stocks whereas, selective pharma stocks witnessed profit booking at higher levels.
Sensex forms long bullish candle
Stock Picks
- INDUNILVR: BUY, CMP 2389.55, TARGET 2510, SL 2340- On the daily time frame, the counter has formed a Cup and Handle chart pattern and the structure indicates breakout from resistance zone in the near term for fresh up move.
- GODREJPROP: BUY, CMP 1977.95, TARGET 2080, SL 1935 - The stock is into a gradual up move post its declining trend and forming a higher high and higher low series pattern, the rising trend suggest bullish momentum to continue from current levels.
- INDUSINDBK: BUY, CMP 920.5, TARGET 965, SL 900 - The stock has formed Head and Shoulder chart pattern on intraday charts and neckline is acting as a strong support, the rising volume indicates the counter is set for a new leg of the uptrend in coming horizon.
- ICICIGI: BUY, CMP 1432.35, TARGET 1505, SL 1400 - Post reversal from its double bottom formation of around 1330, currently the stock has formed a Cup and Handle chart formation and hints for a fresh leg of bullish momentum in the near term.
- M&M: BUY, CMP 900.8, TARGET 950, SL 880- The counter was trading in a range bound mode for the last few weeks and ultimately given the range breakout and hence the formation indicates a further uptrend from the current levels in the coming trading sessions.
(Source-CapitalVia)
Mumbai: The benchmark indices continued the positive momentum as BSE Sensex moved up by 85 points. Among sectors, strong buying was seen in auto and reality stocks whereas, selective pharma stocks witnessed profit booking at higher levels.
"Technically, after last Friday sharp recovery, the BSE Sensex opened on a muted note, but maintained positive momentum throughout the day. On daily charts, the index has formed small bullish candle and on intraday charts it holding higher bottom series formation which is largely positive," says Shrikant Chauhan, head of equity research (retail), Kotak Securities.
Above the required level, the uptrend formation will continue till 61,500-61,700. However, quick intraday correction is not ruled out, if the index succeeds to trade below 61,100. Below the same chance of hitting 60,800-60,650 would turn bright he added.
