Bullish Sentiment Likely If Sensex Trades Above 79,800

Mumbai: On Wednesday, the benchmark indices witnessed positive momentum with Sensex going up by 230 points. Among sectors, energy indices outperformed which rallied over 1.5 per cent, whereas selective pharma and realty stocks witnessed some profit booking at higher levels. Technically, after early morning intraday correction, Sensex took the support near 79,800 and bounced back sharply. On daily charts, the index has formed a bullish candle and on intraday charts it is holding uptrend continuation formation which is largely positive.

Shrikant Chouhan of Kotak Securities, said: “We are of the view that, as long as index is trading above 79,800 the bullish sentiment is likely to continue.” On the higher side, the market could move up to 80,500-80,900. However, below 79,800, uptrend would be vulnerable.

STOCK PICKS

Polycab | TRADE-BUY | CMP: Rs7044.00 | SL: Rs6900.00 | TARGET: Rs7400.00

Polycab has witnessed a breakout above the crucial resistance level of Rs 6,950, supported by a significant rise in volumes. This breakout signals strong buying momentum and a continuation of the bullish trend. The RSI indicates sustained strength, aligning with the price action, and suggests the potential for further upside in the near term.

Tata Power | TRADE-BUY | CMP: Rs417.00 | SL: Rs409.00 | TARGET: Rs440.00

Tata Power has surged past the key resistance level of Rs 414, confirming a breakout with a noticeable rise in trading volumes. The RSI reflects strong bullish momentum, indicating robust buying interest. With the breakout level acting as new support, the stock is poised for a move towards its target, supported by improving technical indicator

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