Further uptrend likely

Mumbai: On Tuesday, the benchmark indices registered a fresh all-time high, after a promising uptrend rally as BSE Sensex rose by 391 points. Among sectors, Auto index outperformed rallied over two per cent whereas intraday profit booking were seen in selective IT, oil and gas stocks. Technically, after a positive opening, the market held the positive momentum throughout the day. Bullish candle on daily charts and higher bottom formation on intraday charts indicating further uptrend from the current levels.

For the traders now, the 80,000 would act as a key support zone.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, as long as the market is trading above it the bullish sentiment is likely to continue. On the higher side, the 80,500-80,800 would be the immediate resistance zones for the day traders.”

However, below 80,000 level, the sentiment could change. Below the same uptrend would be vulnerable. Prashanth Tapse, senior V-P (research), Mehta Equities, said: “There is growing optimism that the Budget will be growth oriented and the government will focus on sectors that would drive capex and consumption going ahead. Most of the Nifty-50 companies are expected to post strong results in the first quarter earnings, which is also aiding the investors’ sentiment. The trading theme revolves around markets increasing bets into the narrative that a soft landing in the US is underway.” 

STOCK PICKS

Alkem- Buy | CMP: 5,325.35 | SL: 5,250 | TARGET: 5,500

Alkem Laboratories Ltd offers a favorable buying opportunity given its current technical configuration. A stop loss at 5,250 is recommended, with a target of 5,500. The stock has surpassed a resistance level around 5,258.85, which now acts as support. The recent breakout, along with strong volume, reinforces a bullish perspective, making it an appealing option for a short-term trade aiming for the 5,500 target.

M&M- Buy | CMP: 2,925 | SL: 2,900 | TARGET: 2,975 / 3,000

Mahindra & Mahindra Ltd presents a promising buying opportunity based on its current technical setup. With a stop loss at 2,900 and targets of 2,975 and 3,000, the stock is well-positioned for a short-term trade. The recent price action indicates a breakout, with the RSI above 60 signalling strong momentum, enhancing the bullish outlook and making it a suitable candidate for achieving the specified targets.

(Source: Riyank Arora, technical analyst at Mehta Equities)

CMP (Current Market Price); SL (Stop Loss)/All prices in Rs