It’s Time To Exit Long Positions

Mumbai: On Thursday, the benchmark indices continued positive momentum, BSE Sensex was up by 666 points. Among sectors, Auto and Metal indices rallied over two per cent whereas selective consumer and pharma stocks registered intraday profit booking at higher levels. Technically, after a muted opening market successfully cleared 85,300 mark and post breakout positive momentum intensified. A bullish candle on daily charts and breakout continuation formation on intraday charts indicating further uptrend from the current levels.

Shrikant Chouhan, head (equity research), Kotak Securities, said: “We are of the view that, as long as market is trading above 85,300 level, the bullish setup is likely to continue. On the higher side, it could move up till 86,000-86,300. On the other side, below 85,300 level, the uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.”

Prashanth Tapse, senior V-P (research), Mehta Equities, said: “Winding up of positions by investors on the monthly expiry day coupled with buoyancy in Asian and European market cues triggered a sharp upsurge as both benchmark Sensex & Nifty scaled fresh highs. Buying in banking, auto and metal stocks led the rally in benchmark indices with Sensex now inching towards the 86k mark. Falling bond yields in the US and some other developed economies coupled with stimulus announcements by China has fuelled fresh optimism in global equity markets, including India.”

“Indian equity markets are witnessing a robust performance, with the Sensex up by 666 points and the Nifty surpassing the 26,000 mark, closing at 26,216 points. This marks a continuation of the bullish trend observed over the past several sessions, with the Nifty hitting a record high. Key sectors driving this momentum include, Auto, Metal, PSU Bank which saw gains between 2.26%, 2.13% and 1.02%. In global markets, Asian equities are also on the rise, buoyed by stimulus measures from China and a weaker yen,” said, Vaibhav Vidwani of Bonanza Portfolio.

STOCK PICKS

Hero MotoCorp| BUY: Rs6,056| SL: Rs5,985| TARGETS: Rs6,160 -Rs6,240

Initiate a buy on Hero MotoCorp as the stock’s RSI (Relative Strength Index) stands at 68, indicating strong bullish momentum, but still below overbought levels, suggesting room for further upside. Immediate targets are set at. Recent price action has been supported by increased volume, confirming the uptrend. The risk-reward ratio remains favourable, with a well-defined stop loss.

Power Grid |BUY: Rs365.35| SL: Rs357| TARGETS: Rs372.50-Rs 380

Buy Power Grid as the RSI is currently at 75, signalling strong momentum, but approaching overbought territory, which supports the near-term targets. Technical indicators show a robust breakout, with price action supported by volume expansion. With a disciplined stop loss, the trade offers an optimal risk-reward profile as the stock tests resistance levels.

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

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