Sensex forms long bullish candle

Stock Picks

- NMDC: BUY, CMP Rs143.1, TARGET Rs151, SL Rs139. The stock has given a breakout of the sloping channel pattern on the daily chart. Hence the bullish activity post breakout hints for up move to continue in the coming sessions

- ONGC: BUY, CMP Rs160.4, TARGET Rs170, SL Rs156. Post correction of the last few sessions the stock has formed a Dragonfly Doji candlestick formation near its support zone. Moreover, closing above its short term moving average should result in a bullish trend for the stock in near term

- TECHM: BUY, CMP Rs1407, TARGET Rs1480, SL Rs1375. The counter has reversed from its double bottom support zone and the texture of the chart suggests an uptrend rally with a favorable risk and reward scenario in the coming horizon

- SBIN: BUY, CMP Rs483.7, TARGET Rs510, SL Rs474. For the past few weeks, the stock is in a declining trend. However, at present, a reversal from its crucial retracement support area is very likely in the coming trading sessions

- COLPAL: BUY, CMP Rs1439, TARGET Rs1510, SL Rs1405. The stock had been into an accumulation phase and the recent range breakout with a strong bullish candle suggests a new leg of the up move from current levels

(Source: Capital Via)

For traders now, 55,800 would be the immediate support level, above which the index could continue momentum till 56,500-56,800. However, dismissal of 55,800 could possibly trigger one more correction wave till 55,500-55,300

Mumbai: The benchmark indices recovered sharply from the day lowest levels. The BSE Sensex was up by 350 points. Among Sectors, metal stocks outperformed as a result Metal index rallied over four percent whereas Bank Nifty and Auto indices remained under pressure.

On Monday, the market opened with a gap down, but after initial sell off the index took the support near 16400 and reversed sharply.

"Technically, Sensex has formed long bullish candle which is broadly positive. Currently the market is hovering between 55,000-56,200 price ranges," says Shrikant Chauhan, head (equity research-retail), Kotak Securities.

In the last hour of trade, it cleared the resistance of 56,200 points, but it would be interesting to see whether the index hold the level of 56,200 or not. For the traders now, 55,800 would be the immediate support level to watch out. Above which, the index could continue the momentum till 56,500-56,800. However, dismissal of 55,800 could possibly trigger one more correction wave till 55,500-55,300, he added.