Breakout Texture May Continue Above 82,700 Level

Mumbai: In the last week, the benchmark indices continued positive momentum as BSE Sensex was up by 1,653 points. Among sectors, Reality and Bank Nifty indices outperformed. Reality index was the top gainer, rallied over five per cent whereas IT and Media indices shed over two per cent.

During the week, market consolidate near 82,000 level, but on last Friday, it successfully cleared the 82,700 resistance mark and post breakout positive momentum intensified. Technically, bullish candle on weekly charts and higher bottom formation on daily charts suggesting further upside from the current levels.

“We are of the view that, as long as market is trading above 82,700 level, the breakout texture is likely to continue,” says Amol Athawale, V-P (technical research), Kotak Securities. 

On the higher side market could move up till 85,000-85,500. On the other side, below 82,700 the sentiment could change. Below the same, traders may prefer to exit out from the trading long positions. For Bank Nifty now, the current market texture is bullish, but due to temporary overbought conditions, we could see range bound activity in the near future. For traders now, 53,400 and 53,000 would be the key support zones, while 54,500-54,700 would act as crucial resistance areas for the bulls. However, below 53,000 level, the uptrend would be vulnerable.

Markets were on a roll on the back of across-the-board buying as the US interest rate cut has triggered a downward spiral in both Indian and US bond yields, making India’s financial assets more attractive and could result in robust dollar flows going ahead.

“While intra-day volatility would continue amid geo-political tensions and global uncertainty, strong domestic investors’ appetite for equity assets will keep Indian markets on a strong footing in the medium to long,” says Prashanth Tapse, senior V-P (research), Mehta Equitie

Vaibhav Vidwani, research analyst, Bonanza Portfolio, said that the Indian stock market closed positively today, with the Sensex rising by 1,359 points 1.63 per cent to reach 84,544 points, while the Nifty gained 375 points 1.48 per cent to settle at 25,790 points.

This upward momentum was driven by robust performances in major sectors such as metal, banking and FMCG, with notable gains from M&M, JSW Steel, and Larsen & Toubro. The broader market also reflected optimism, as the BSE Midcap and Smallcap indices were also in green today. The advance-decline ratio favored gainers today.

STOCK PICKS

CMP: Rs161.00; Stop Loss: Rs150; Target: Rs180-200

IRFC is exhibiting solid upward momentum and is trading near pivotal support zones. With growing institutional interest backing the stock, it presents a promising buying opportunity at the current level. The immediate upside points towards Rs180, with long-term resistance expected near Rs200.

CMP: Rs542; Stop Loss: Rs500; Target: Rs600-605

RVNL has rebounded from its key support level of Rs514, signaling a bullish outlook. At the current price, the stock appears well-positioned for an upward move towards Rs600, with potential to reach Rs605. A firm stop loss at Rs500 is recommended to limit downside risk.