Further Uptrend Possible
For now, 82,900 and 82,700 would act as a key support zones, above the same it could move up till 83,400-83800; On the flip side, below 82,700, expect one quick correction till 82,400-82,200
Mumbai: On Tuesday, the benchmark indices continued range bound activity BSE Sensex was up by 105 points. Among sectors, selective auto stocks witnessed buying interest whereas Media index was the top looser, shed over one per cent.
Shrikant Chouhan, head (equity research), Kotak Securities, said: “Technically, after a muted open entire day the market trade above 82,900. A positive consolidation on intraday charts is indicating further uptrend from the current levels. For the trend following traders now, 82,900 and 82,700 would act as a key supports zone. As long as the market is trading above the same, the bullish texture is likely to continue. On the higher side, it could move up till 83,400-83800. On the flip side, below 82,700 the sentiment could change. Below the same, we could expect one quick correction till 82,400-82,200.”
Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Range-bound session continued for a second straight session ahead of key US Fed policy meet decision on Wednesday. Also, investor participation was thin on account of Ananta Chaturdashi. Hence, buying was seen in select frontline stocks. Besides rate cut hopes, the Fed chief’s comment on the US economy and inflation will be key things to look for as it will give some indication of the future rate cut prospects.”
Stock Picks
HDFC Bank | Buy: Rs1,668 | SL: Rs1,650 | Target: Rs1,700-1,720
The stock is trading near key support, offering a solid entry point for a potential move higher. Immediate, driven by positive market sentiment and strong technical indicators. A breakout above Rs1,700 could lead to further upside momentum. Risk management through a tight stop loss is essential.
Kotak Bank| Buy: Rs1,843 | SL: Rs1,825| Target: Rs1,900
The stock is poised for a potential rally with targets at, supported by favourable price action and growing buying interest. A sustained move above Rs1,850 could accelerate gains. Strong technicals indicate bullish momentum, making it a good buy at current levels. Keep the stop loss tight to limit downside risk.
(Source: Riyank Arora, technical analyst at Mehta Equities)