Further uptrend possible
As long as the index is trading above 79,600, market could rally up to 80,200-80,500 range; Below 79,600 level, the texture could change, traders may prefer to exit out from the trading long positions
Mumbai: On Wednesday, the benchmark indices registered a fresh all time high of 80,074 points. BSE Sensex was up by 545 points. Almost all the major sectoral indices were traded in to the positive territory, but Private bank index outperformed rallied over 2 per cent. Technically, after a gap-up opening market comfortably trading above 79,600 resistance level, which is largely positive.
In addition, on intraday charts it is holding higher high and higher low formation, which supports further uptrend from the current levels.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, as long as the index is trading above 79,600 the bullish structure is likely to continue. Above the same, the market could rally up to 80,200.” Further upside may also continue which could lift the index up to 80,500. However, below 79,600 the texture could change. Below the same, traders may prefer to exit out from the trading long positions.
“While the record-breaking spree continued on the bourses, benchmark Sensex breached the 80k mark for the first time in intra-day trades, primarily fuelled by upsurge in banking stocks. Optimism in global equities weighed positively on Indian markets, which also propelled gains in other sectoral stocks, including the telecom counters. HDFC Bank led the recovery on the back of a potential increase in the bank’s weightage in the MSCI Emerging Markets index.,” says Prashanth Tapse, Senior VP (Research), Mehta Equities.
On Tuesday, the bank had reported June 2024 quarter shareholding data which showed that the FII ownership stands at 54.8 per cent, which triggered the possible increase in MSCI Emerging Markets index, and if this comes in the market then it can potentially bring inflows of $3.2 billion to $4 billion. Technically, if the bank trades above the crucial resistance level of Rs1,720, we can see further upside in the counter up to Rs1,800-1,850 in next few months.
STOCK PICKS
Marico Ltd
Sell | CMP: 607.35 | SL: 630 | TARGET: 560
The stock has broken below its recent swing low support of 607 and closed below this level, indicating a retest of the breakdown point. With trading volume nearly matching its 30-day average and strong bearish signals, the stock is likely to reach targets of 560 and lower. Implementing a strict stop-loss at 630 is recommended to manage risk effectively in this short position.
PVR Inox
Buy | CMP: 1,461 | SL: 1,419 | TARGET: 1,550
The stock has successfully retested the breakout level of 1,470 and remains above this point. With solid support around 1,450 and an RSI (14) on the daily charts indicating good momentum at around 60, combined with trading volume in line with its 30-day average, the stock shows bullish potential. Setting a strict stop-loss at 1,419 is advised to manage risk while targeting 1,550 and above.
(Source: Riyank Arora, technical analyst at Mehta Equities)
CMP (Current Market Price); SL (Stop Loss)/All prices in Rs