Uptrend may continue till 53,100-53,500 levels

Mumbai: The domestic stock market witnessed a range-bound activity near its all-time high level on Monday. The weekly opening of the BSE Sensex was positive, the benchmark index Sensex opened at 53,126.73 points, but due to lack of follow-through buying it consolidated in the range of 52,700 to 53,100 levels.

Technically, the market made a fresh high, but failed to sustain above the 53,100 level. However, on the intraday charts, the index still maintains higher bottom series formation which is broadly positive for the market. We are of the view that, as long as the Nifty/ Sensex is trading above 52,550 points the uptrend texture should intact. We can expect an uptrend continuation wave up to 53,100-53,500 points.

On the flip side, below 52,550 points, it would increase further weakness up to 52,000-51,700 points.

"Among sectors, the metal stocks continue the positive momentum and strong buying was seen in PSU banks. Intraday profit booking was seen in HDFC Life and selective IT stocks," says Shrikant Chouhan, EVP (equity technical research), Kotak Securities.

Stock Picks

- SUNPHARMA_Above Rs678 with a target of Rs699 and Stop loss of Rs665. It is trading in a Strong uptrend and is on the verge of a breakout

- GRASIM_Above Rs1,520 with a target of Rs1,565 and Stop loss of Rs1,490. It has support of 8 and 40 EMA

- TATAMOTORS_Above Rs345 with a target of Rs355 and Stop loss of Rs340. The stock is in upward trending channel and is on the verge of a breakout

- TATACONSUM_Above Rs768 with a target of Rs790 and Stop loss of Rs755. It has a support of 8 EMA

- ONGC_Above 124 with a target of 130 and Stop loss of 117. It has reversed from the support of 8 EMA

(Source-CapitalVia)