Further uptrend likely
For the traders now, 78,250 would be the key support zone. Above which the market could move up till 79,000-79,200; On the flip side, below 78,250 uptrend would be vulnerable
Mumbai: The benchmark indices continued positive momentum, the Sensex was up by 620 points. Among Sectors, Media, Energy, Oil & Gas indices outperformed, rallied over 1 percent whereas despite strong momentum profit booking were seen in Metal stocks as a result Metal index shed 1.40 percent.
Technically, after muted opening market successfully cleared the short-term resistance of 78,250 and post breakout the bullish momentum intensified. A bullish candle on daily charts and breakout continuation formation on intraday and daily charts indicates further uptrend from the current levels.
Shrikant Chouhan, Head Equity Research, Kotak Securities, said:“We are of the view that, the short-term technical set up is positive but due to temporary overbought conditions, we could see some profit booking at higher levels. For the breakout traders now, 78,250 would be the key support zone.”Above which the market could move up till 79,000-79,200. On the flip side, below 78,250 uptrend would be vulnerable.
“Investors are mounting lots of bullish bets ahead of the next month’s Budget, which once again triggered a major rally and lifted both benchmark indices to fresh all-time highs. Market participants are hoping for a reform-oriented budget from the government that would translate into buying action in stocks supportive of long-term economic growth,” says Prashanth Tapse, Senior VP (Research), Mehta Equities.
STOCK PICKS
PFC | Buy | CMP: 481.35 | SL: 470.00 | TARGET: 500.00 and 510.00
The stock has touched its anchor VWAP support mark of 476-480 on its daily time frame charts. With the overall risk-reward ratio favoring long positions and limited downside risk from current levels, a strict stop-loss can be set at the 470 mark. The stock can be considered for potential upside targets of 500.00 and 510.00. The RSI (14) on the daily time frame, being around 50.58, indicates that a momentum pick-up is likely in the next few days.
Cosmo First | Buy | CMP: 784.85 | SL: 750.00 | TARGET: 850.00 and 900.00
The stock has given a good breakout above its September 2023 highs and successfully managed to close above the same. With the RSI (14) around 81.72 and the stock witnessing a sharp surge in volumes, it appears to be a good buy. A stop-loss can be set at 750.00, with potential upside targets of 850.00 and 900.00.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/ All prices in Rs