Charts Indicate Further Uptrend

Mumbai: On Monday the benchmark indices continued positive momentum. BSE Sensex was up by 384 points. Among sectors, almost all the major sectoral indices were traded into the positive territory, but PSU Bank index outperformed, rallied over three per cent.

Technically, after a positive opening market held the positive momentum throughout the day. Bullish candle on daily charts and uptrend 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, the current market texture is bullish, but due to temporary overbought conditions, we could expect range-bound activity in the near future.”

For the day traders, the 84,700-84,500 would act as a key support zone, while 85,300-85,500 would be the immediate resistance areas for the bulls. However, below 84,500 level, the uptrend would be vulnerable. Below the same, traders may prefer to exit out from the trading long positions.

Vaibhav Vidwani, research analyst, Bonanza Portfolio, said: “The Indian stock market closed on a positive note, with both the Sensex and Nifty reaching new record highs. The Sensex surged by 384 points, or 0.45 per cent, to close at 84,928, while the Nifty 50 index climbed 148 points, or 0.57 per cent, finishing at 25,939. Following the Fed’s rate decrease, it is anticipated that MPC will follow suit in the coming months, drawing capital to banks and NBFC, which helped Nifty PSU Bank close 3.41 per cent higher.

STOCK PICKS

Granules India | Buy: Rs560| SL:Rs547.50| Target: Rs600

Granules India is currently trading at an attractive entry point with a strong support level. The stock exhibits upward momentum, supported by a robust demand zone and favorable technical indicators. The target offers a substantial upside suggesting a potential rally driven by positive price action. Investors should maintain a strict stop loss at to manage downside risk.

Wipro Ltd. | Buy: Rs534| SL:Rs520| Target: Rs580

Wipro presents a buying opportunity backed by solid fundamentals and technical support. The stock is poised for a potential breakout, with key resistance, indicating room for growth. Positive sentiment in the IT sector adds to the bullish outlook, making this an attractive entry point. A disciplined stop loss is advised to safeguard against volatility.

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

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