Mumbai: On Monday, the benchmark indices hit record highs. After a spectacular rally, while Sensex was up 2,630 points. All major sectoral indices were trading in the positive zone, with the PSU Bank index outperforming, gaining over 8 per cent.

“Technically, the market opened throughout the day and is currently trading comfortably after a sharp price surge, which is largely positive. As long as the index is trading, the bullish momentum is likely to continue. On the higher side, the index may rise. On the other hand, below the index might correct back to levels,” says Shrikant Chouhan, head (equity research), Kotak Securities.

Fuelled by exit polls forecasting a decisive victory for the PM Modi-led NDA in the 2024 Lok Sabha elections. With Adani Group stocks shining on higher volumes Adani Enterprises surged seven per cent and Adani Ports 10.6 per cent. The broad-based rally was driven by traders’ fear of missing out, leading to robust bargain hunting and value buying.

“Top sectoral performers included PSU Banks (+8.61%). The rupee strengthened to a two-month high of 83.15, and the India VIX plunged 15 per cent to 20.85. The trading sentiment remains bullish with Nifty’s immediate target set at 23,500,” says Prashanth Tapse, senior VP (research), Mehta Equities Ltd.

STOCK PICKS

REC Ltd.

Trade: Buy | CMP: 604.50 | SL: 585.00 | Target: 650.00

The stock has given a strong breakout above its recent swing high resistance mark of 591.40 on its daily time frame charts and successfully managed to close above the same. With the RSI (14) on the daily time frame being around 68.13 and witnessing a minor uptick on the daily charts, the momentum looks strong and the stock is poised for an up-move towards 650.00 and above. A strict stop-loss should be kept at the 585.00 mark to manage risk well on the trade.

Bank of Baroda

Trade: Buy | CMP: 296.95 | SL: 289.00 | Target: 325.00

The stock has given a strong breakout above its parallel channel resistance mark of 290.00 on its daily time frame charts and successfully managed to close above the same. With the RSI (14) on the daily time frame being around 72.66 and witnessing a strong uptick on the same, momentum looks strong and it appears that the stock will eventually head towards the target of 325.00 and above. A strict stop-loss should be kept at the 289.00 mark to manage risk well on this trade.

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

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